Credit card payment: Credit card payments-Reserve Bank of India has made a big change regarding credit card payments. Under this change, now you cannot use CRED, PhonePe, Amazon Pay, Paytm for credit card payments. Read the full news…
Credit card payment: From July 1, the Reserve Bank of India has tweaked the repayment of credit card outstanding amount. The central bank has stated that all credit card bill payments via third-party applications must be routed through the Bharat Bill Payment System (BBPS), which is being managed by the National Payments Corporation of India (NPCI).
Credit card holders from major banks, such as HDFC Bank and Axis Bank, can no longer have the option to settle their bills using third-party applications like PhonePe, Amazon Pay, and Paytm. This change is a result of these banking institutions not being integrated with the Bharat Bill Payment System (BBPS) platform.
In comparison, CRED has claimed that credit card holders from all issuers can settle their bills using its platform.
What is BBPS?
The Bharat Bill Payment System (BBPS) was developed by the Reserve Bank of India (RBI) with the aim of providing advanced technological solutions to streamline the payment collection process for businesses and customers. In accordance with industry specialists, BBPS enables customers to conveniently make payments through a network of physical outlets like bank branches and collection stores, as well as through various digital channels such as apps and websites nationwide. This innovative system ensures prompt settlements and accommodates a variety of payment methods for enhanced flexibility and convenience.
BBPS tie-up other banks
For individuals holding credit cards from State Bank of India (SBI), Bank of Baroda, Kotak Mahindra Bank, and other major banks, there is no cause for alarm. These banks have seamlessly integrated with the Bharat Bill Payment System (BBPS) platform, ensuring that customers can conveniently utilize third-party applications for their payment needs.
12 banks that are live on BBPS, as of July 1, 2024
1) SBI
2) Kotak Bank
3) IndusInd Bank
4) IDBI Bank
5) AU Small Finance
6) Canara Bank
7) Bank Of Baroda
8) Federal Bank
9) ICICI Bank
10) Union Bank
11) Punjab National Bank
12) Saraswat Bank
Banks still working on integration include major players like:
1. Axis Bank
2. HDFC Bank
3. IDFC First Bank
4. Indian Bank
5. Indian Overseas Bank
6. YES Bank
Third-party apps
The central bank issued the directive to regulate and monitor peer-to-peer (P2P) credit card transactions conducted through third-party applications. The central bank’s heightened scrutiny on such transactions follows the discovery of cases where customers were utilising credit cards for paying rents and tuition fees via these platforms.
What should credit card users do?
Users should first check whether their respective financial institution is currently operational on the Bharat Bill Payment System (BBPS) platform. This particular information can usually be found on the official website of the bank or through available customer service communication channels. For customers whose banks have not yet integrated with BBPS, it is prudent to utilise alternative payment mechanisms to guarantee timely settlement of bills and avoid accruing any penalties due to late payments.
