Credit Card Payment: Problems of HDFC Bank, Axis Bank and Yes Bank customers may increase. The government has brought new rules for credit card payment. According to these rules, the changes were to be made by June 30, which these banks have not done
Credit Card Payment: The problems of HDFC Bank, Axis Bank and Yes Bank customers may increase. The government has come up with new rules for credit card payments. According to these rules, the changes were to be made by June 30, which these banks have not done. 6 major banks of the country have not yet activated their Bharat Bill Payment System (BBPS) to take credit card bill payments through third-party apps like Credit, PhonePe and Paytm. RBI’s June 30 deadline has passed. According to industry sources, banks are expecting a month’s relaxation from the Reserve Bank of India (RBI) to complete the BBPS activation process. The Reserve Bank of India had earlier directed that all credit card payments after June 30 should be processed through the centralized payment system Bharat Bill Payment System (BBPS).
The deadline was till June 30
According to industry players, even after five days of the June 30 deadline, till July 5, six banks have not complied with the RBI circular. These banks are HDFC Bank, Axis Bank, IDFC Bank, Indian Bank, Indian Overseas Bank and Yes Bank. According to the industry, banks are expecting a month’s relaxation from RBI as they have set up systems to go live on BBPS and this process is taking time. The Indian Banks Association (IBA) is liaising with the RBI on this matter.
12 banks have activated
A total of 12 banks have already activated their BBPS. These are Kotak Mahindra Bank, Punjab National Bank, ICICI Bank, IDBI Bank, AU Bank, Bank of Baroda, Canara Bank, Federal Bank, IndusInd Bank, Saraswat Bank, SBI and Union Bank.
How are Cred, PhonePe taking credit card bill payments from non-compliant banks?
For non-compliant banks like HDFC Bank and Axis Bank, third party payment apps like Cred and PhonePe are using options like IMPS, NEFT and UPI. For banks that have activated BBPS like SBI and Kotak Mahindra Bank, these fintech platforms are making payments through the centralized billing network.
Why has RBI made centralized payment of credit cards mandatory?
According to the industry, RBI aims to gain better visibility on payment trends and improve the ability to track and resolve fraudulent transactions through a centralized payment system.
