The UPI has emerged as the most popular retail payment system in India. The capabilities in UPI will be further enhanced by introducing single-block-and-multiple-debits functionality. This facility will enable a customer to block funds in his/her account for specific purposes, which can be debited whenever needed, said RBI Governor Shaktikanta Das while presenting his statement at Monetary Policy Committee’s meeting.
This functionality will significantly enhance the ease of making payments for investments in securities including through the retail direct platform as well as e-commerce transactions, he added.
Expanding the Scope of BBPS
The Bharat Bill Payment System (BBPS) has been steadily expanding since its launch in 2017. At present, it handles recurring bill payments for merchants and utilities and does not cater to nonrecurring bills. It also does not cater to bill payments or collections such as payment of fees for professional services, education fees, tax payments, and rent collections for individuals even if those are recurring in nature.
Therefore, the scope of BBPS is being enhanced to include all categories of payments and collections, both recurring and non-recurring, and for all category of billers (businesses and individuals). This will make the BBPS platform accessible to a wider set of individuals and businesses who can benefit from the transparent payments experience, faster access to funds, and improved efficiency.
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