RBI extends deadline for BBPS till Dec 31; pilot to start tomorrow

MUMBAI: The Reserve Bank of India has extended the deadline for BBPOU applicants to be able to meet the requirement for the starting paid up capital to December 31. This will also allow applicants to meet their minimum one year of experience in bill collection criteria if they could not meet it previously.

However the regulator has clarified that those who fail to meet the criteria will not be allowed to function as a bill collecting agent after May 31 of next year.

“Entities undertaking the business of billing under the current scope of BBPS would be required to become an agent of authorised BBPOUs or exit the business of bill payments covered under the scope of Bharat Bill Payment System (BBPS) by May 31, 2017,” said the RBI in a notification released on Tuesday.

While the RBI had come out with a list of 26 banks and around 8 non-banking entities who were granted in-principle approval for BBPS, the National Payments Corporation of India will start the pilot from August 31 with around 8 to 10 entities said two people in the know of the matter.

“The pilot will start with the businesses already doing bill collection, while the others as and when they put up their systems will join the pilot,” said the person mentioned above.