What is BBPS ? Full Explain

[Abhishek012]

What is BBPS ? Full Explain:

First of all, no one has come here to take the UPSC exam. So, I will explain in simple language so that common people can understand as well. What exactly is BBPS ? BBPS akhir kis chirya ka naam hain ? BBPS akhir kis khet ki muli hain ? right ?

And I am also writing this for @Tejo Bhai because I don't know what kind of comments he has been making ever since RBI made bill payments mandatory through BBPS. @Tejo Bhai is very sad, upset. Jaise ki girlfriend breakup kar k chali gayi ho. 🤣🤣

Pay via billdesk.

Note: Yesterday, Billdesk worked for me for APSPDCL

Ap and TG, Power distribution companies are not of BBPS billers, because they don't want as they need to pay X amount for BBPS for the service.

Alternatively, They launched Bids to collect payments, Billdesk, Paytm (Apspdcl, dont know abt others) ... quoted less. Also due to state govt. Guidelines, APonline(part of meeseva) is also available to pay.

several are being, paying bills specially via third party payment aggregators like bill desk and other fintechs.

the bills paid by users are not timely settled or not been successfully, this created issues and seems. RBI banned payment aggregators to process non-bbps bill payments via their payment gateway.

payu, paytm and other paymet gateway service providers can not use or give their gateway channels, to process bill payments.

*Billdesk individually partnered will billers, so they are not effected but we need to see in future what will happen.

Raise of Bill Desk, fall of Third party payment aggregators.

No More Freebies, Jai Modi, Jai BJP.

Ok, so what is BBPS ?

Look, BBPS is an interoperable system like UPI, but it is for all bill payments in India.

I have explained this many times here on the forum. Bharat Bill Payment System (BBPS) is an integrated bill payment system in India offering interoperable and accessible bill payment service to customers through a network of agents of registered member as Agent Institutions (AI), enabling multiple payment modes, and providing instant confirmation of payment.

For example -

If you create your own app and want to offer bill payment services, BBPS will provide you with a package that includes all billers from across India. You won't need to go to each one individually and partner with them.

Similarly, if you are a biller, whether you are a DTH or mobile network operator company, an insurance company or banks that want to collect payments for their credit card bills. You don't need to partner with each third-party app individually. Just contact BBPS and list your company with them.

Misinformation -

Okay, some people might be thinking that now the business of third-party payment aggregators is finished. Has BBPS taken over the entire bill payment business? Right ?

Answer - NO, Nahi, Naah, Ledu, Illai, Illa.

This is where the BBPOUs come in -

Now ab tumlog pucho yeh Bharat Bill Payment Operating Units (BBPOUs) kya hain ? Pucho ? Pucho ? Ok i will tell.
Bharat Bill Payment Operating Units (BBPOUs) are entities authorized by the Reserve Bank of India (RBI) to manage bill payments and aggregations in the Bharat Bill Payment System (BBPS). BBPOUs can be banks or non-bank entities that work with customers, billers, payment gateways, agency networks, and aggregators. They can choose to integrate with customers (Customer OU) or billers (Biller OU), or both.

Simple language - if you are a third-party app, you won't go directly to BBPS. You will contact a BBPOU company, and they will offer you a package of all BBPS billers.

And who are these BBPOU companies? They could be Billdesk, PayU, EuroNet, or even banks themselves.

Here are Top 20 BBPOU companies -

Biller Operating Unit Statistics | Bharat Connect | BBPOU List Bharat BillPay

Discover the top 20 performing Bharat Bill Payment System Operating Units (BBPOUs) within the BBPS network. Explore the leading bill payment service providers, their efficiency, and contribution to seamless payment experiences across various industries.

www.bharatbillpay.com

Here you will see Billdesk is no. 1 BBPOU. Therefore, no payment aggregator is going to go out of business.




Here @Tejo Bhai said the first line correctly, but then the second line became like i can say half wrong or something ?

the bills paid by users are not timely settled or not been successfully, this created issues and seems. RBI banned payment aggregators to process non-bbps bill payments via their payment gateway.

payu, paytm and other paymet gateway service providers can not use or give their gateway channels, to process bill payments.

Payment gateways and banks that have BBPOUs licensed by the RBI are still in business. They can offer bill payment services to third-party apps. And to be honest, they are already offering these services.

Now, the last thing, what is the benefit of doing all this ?

1st benefit -

Look, having a centralized payment system means that fraud and unauthorized transactions can be properly tracked.

A better example can be understood through rent and education payments. You've seen people transferring money to their own bank accounts by choosing rent and education payments through third-party apps. In BBPS, only genuine education institutions and rent billers are added.

2nd benefit (why or how BBPS transaction is instant settled ?) -

You might know that any online payment or transaction we make is not instantly settled. Even if the money appears in the bank through IMPS or UPI, or the merchant payment is instantly successful, or even for credit card bill payments, the actual money is not received by the bank or the merchant instantly. Even if the money shows up in our bank and we can use it but the bank receives that money later.

So, BBPS (owned by NPCI) provides a guarantee to billers that if someone makes a payment, and if the payment gateway, bank, or third-party app companies go bankrupt or disappear, NPCI guarantees that they will cover that amount from their own pocket, no matter what happens in the world.

As you might remember, when RBI imposed a moratorium on Yes Bank, the UPI transactions that occurred just before that were not instantly settled, right? So how did the receiver bank and merchant get the actual payment later? The simple answer is that NPCI must have covered it from their own pocket.

If you're wondering where NPCI will get so much money from, the simple answer is that NPCI's owners include SBI, HDFC, ICICI, BOB, Citi Bank, HSBC Bank, Axis Bank, PNB, Canara, Central Bank, BOI, etc.

You don't need to worry. These banks are well-established, they are grandfather. They have deep pockets and will manage it.

That's why BBPS billers settle instant payments, especially for large credit card bill payments. Because NPCI/BBPS is here, why worry? Even if fraud occurs, the bank will still receive the money, whether the fraud amount is recovered or not.

NPCI will be like "Thara bhai samjhal lena".

 

[Tejo]

What is BBPS ? Full Explain:

First of all, no one has come here to take the UPSC exam. So, I will explain in simple language so that common people can understand as well. What exactly is BBPS ? BBPS akhir kis chirya ka naam hain ? BBPS akhir kis khet ki muli hain ? right ?

And I am also writing this for @Tejo Bhai because I don't know what kind of comments he has been making ever since RBI made bill payments mandatory through BBPS. @Tejo Bhai is very sad, upset. Jaise ki girlfriend breakup kar k chali gayi ho. 🤣🤣





Ok, so what is BBPS ?

Look, BBPS is an interoperable system like UPI, but it is for all bill payments in India.

I have explained this many times here on the forum. Bharat Bill Payment System (BBPS) is an integrated bill payment system in India offering interoperable and accessible bill payment service to customers through a network of agents of registered member as Agent Institutions (AI), enabling multiple payment modes, and providing instant confirmation of payment.

For example -

If you create your own app and want to offer bill payment services, BBPS will provide you with a package that includes all billers from across India. You won't need to go to each one individually and partner with them.

Similarly, if you are a biller, whether you are a DTH or mobile network operator company, an insurance company or banks that want to collect payments for their credit card bills. You don't need to partner with each third-party app individually. Just contact BBPS and list your company with them.

Misinformation -

Okay, some people might be thinking that now the business of third-party payment aggregators is finished. Has BBPS taken over the entire bill payment business? Right ?

Answer - NO, Nahi, Naah, Ledu, Illai, Illa.

This is where the BBPOUs come in -

Now ab tumlog pucho yeh Bharat Bill Payment Operating Units (BBPOUs) kya hain ? Pucho ? Pucho ? Ok i will tell.
Bharat Bill Payment Operating Units (BBPOUs) are entities authorized by the Reserve Bank of India (RBI) to manage bill payments and aggregations in the Bharat Bill Payment System (BBPS). BBPOUs can be banks or non-bank entities that work with customers, billers, payment gateways, agency networks, and aggregators. They can choose to integrate with customers (Customer OU) or billers (Biller OU), or both.

Simple language - if you are a third-party app, you won't go directly to BBPS. You will contact a BBPOU company, and they will offer you a package of all BBPS billers.

And who are these BBPOU companies? They could be Billdesk, PayU, EuroNet, or even banks themselves.

Here are Top 20 BBPOU companies -

Biller Operating Unit Statistics | Bharat Connect | BBPOU List Bharat BillPay

Discover the top 20 performing Bharat Bill Payment System Operating Units (BBPOUs) within the BBPS network. Explore the leading bill payment service providers, their efficiency, and contribution to seamless payment experiences across various industries.

www.bharatbillpay.com

Here you will see Billdesk is no. 1 BBPOU. Therefore, no payment aggregator is going to go out of business.

View attachment 60972
View attachment 60973

Here @Tejo Bhai said the first line correctly, but then the second line became like i can say half wrong or something ?


Payment gateways and banks that have BBPOUs licensed by the RBI are still in business. They can offer bill payment services to third-party apps. And to be honest, they are already offering these services.

Now, the last thing, what is the benefit of doing all this ?

1st benefit -

Look, having a centralized payment system means that fraud and unauthorized transactions can be properly tracked.

A better example can be understood through rent and education payments. You've seen people transferring money to their own bank accounts by choosing rent and education payments through third-party apps. In BBPS, only genuine education institutions and rent billers are added.

2nd benefit (why or how BBPS transaction is instant settled ?) -

You might know that any online payment or transaction we make is not instantly settled. Even if the money appears in the bank through IMPS or UPI, or the merchant payment is instantly successful, or even for credit card bill payments, the actual money is not received by the bank or the merchant instantly. Even if the money shows up in our bank and we can use it but the bank receives that money later.

So, BBPS (owned by NPCI) provides a guarantee to billers that if someone makes a payment, and if the payment gateway, bank, or third-party app companies go bankrupt or disappear, NPCI guarantees that they will cover that amount from their own pocket, no matter what happens in the world.

As you might remember, when RBI imposed a moratorium on Yes Bank, the UPI transactions that occurred just before that were not instantly settled, right? So how did the receiver bank and merchant get the actual payment later? The simple answer is that NPCI must have covered it from their own pocket.

If you're wondering where NPCI will get so much money from, the simple answer is that NPCI's owners include SBI, HDFC, ICICI, BOB, Citi Bank, HSBC Bank, Axis Bank, PNB, Canara, Central Bank, BOI, etc.

You don't need to worry. These banks are well-established, they are grandfather. They have deep pockets and will manage it.

That's why BBPS billers settle instant payments, especially for large credit card bill payments. Because NPCI/BBPS is here, why worry? Even if fraud occurs, the bank will still receive the money, whether the fraud amount is recovered or not.

NPCI will be like "Thara bhai samjhal lena".

Actually, I mean "Raise of BBPS"

Bill desk chakar me "Raise of Billdesk" boldiya

Once check billdesk profits and BBPOU-payu (BBPS service alone, leaving pg services) profits.

Billdesk - They never entertained BBPS, even they are licensed BBPOU. Why @Abhishek012 ?

Transactions of UPI - cleared/processed by NPCI
Transactions of BBPS - cleared/processed by NPCI (BBPCU - Central Unit)

@Abhishek012 you have said BBPS is interoperable system like upi, Upi operational cost beared by Banks. So billers of BBPS are not billed for operational cost, else customers charged?

@Abhishek012
Payment aggregators are restricted to process directly with billers via directly or indirectly, is this not fall?
Now, Payment aggregators are entertained to process bills of BBPS billers, is this beneficial ?

Billers need to agree to all the conditions set by BBPCU and BBPOU

Billers are dependent on BBPOU

BBPOU are dependant BBPCU/NPCI

......

Previously, Biller - biller payment aggregator - bank ac under biller.

Now, Biller - BBPOU (Operating unit), BBPCOU (Customer unit), BBPCU (central unit), bank ac under bbpou.

@Abhishek012 how is this beneficial for a payment aggregator?

Bill desk on-boards billers as BBPOU and settles bills with biller bank ac.
But, here paytm, phonpe payu or others may get beneficial due to customer base.

While mentioning, UPSC @Abhishek012 why don't you say whole story of BBPS ?

 

[Tejo]

@Abhishek012

If biller doesn't bear certain charges, then someone like customer Units-phonpe,paytm,gpay or customers need to bear the charges.

 

[phoenix1386]

The whole copy-paste is classic system-speak, as may be expected.

But I want to discuss this.

Because NPCI/BBPS is here, why worry? Even if fraud occurs, the bank will still receive the money, whether the fraud amount is recovered or not.

NPCI will be like "Thara bhai samjhal lena".

Whether the money is recovered or not.

Anyone with even one half of the brain working just fine, should be able to see where this is going.

Bhai KAHAAN se sambhaalega agar paisa aaya nahi aur fir bhi aage de diya? Ye “bhai” to jhola utha ke chal dega.. bhugtenge log jab arthvyavastha khokhli ho jaayegi.

In English: Wherefrom shall the “brother” handle the situation wherein the money is not input but output? This “brother” would just pick up their sack and leave.. the sufferers shall be the people alone when the economy crumbles due to this newfangled tomfoolery.

Is this why “bad banks” were created, to just take money out of the system without actual replenishment?

I understand you completely believe in what you perpetrate on the masses on all forums, but not all would be ready with a backup plan when the facade comes crumbling down.

It is the responsibility of the learned to guard and protect those around them with truth and facts.

 

[phoenix1386]

@Abhishek012

If biller doesn't bear certain charges, then someone like customer Units-phonpe,paytm,gpay or customers need to bear the charges.

Oh no, you know.

 

[Tejo]

What is BBPS ? Full Explain:

First of all, no one has come here to take the UPSC exam.

Thanks 😊 for praising my information to the UPSC standards.

 

[phoenix1386]

While mentioning, UPSC @Abhishek012 why don't you say whole story of BBPS ?

 

[Tejo]

The whole copy-paste is classic system-speak, as may be expected.

But I want to discuss this.



Whether the money is recovered or not.

Anyone with even one half of the brain working just fine, should be able to see where this is going.

Bhai KAHAAN se sambhaalega agar paisa aaya nahi aur fir bhi aage de diya? Ye “bhai” to jhola utha ke chal dega.. bhugtenge log jab arthvyavastha khokhli ho jaayegi.

In English: Wherefrom shall the “brother” handle the situation wherein the money is not input but output? This “brother” would just pick up their sack and leave.. the sufferers shall be the people alone when the economy crumbles due to this newfangled tomfoolery.

Is this why “bad banks” were created, to just take money out of the system without actual replenishment?

I understand you completely believe in what you perpetrate on the masses on all forums, but not all would be ready with a backup plan when the facade comes crumbling down.

It is the responsibility of the learned to guard and protect those around them with truth and facts.

I didn't understand, what you are saying .....

BBPS is an initiative by RBI to establish Integrated Bill Payment System as crores of rupees transacted for utility payments under several electronic payments.

Now, bill payment can be tracked by BBPS reference.

At Customer Unit or Biller or BBPOU ... any fraud happens BBPS will take Care. (Penalty or Ban will be imposed)

(BBPS, BBPCU )- NPCI .... A public non-profit company, an initiative of RBI and Financial Ministry.

View attachment 60987

Biller - Bill's managed by an BBPOU (Operating unit) - BBPOU shares bills info to Central Unit/NPCI - All Customer Units will help to process bills from customers by collecting money- Finally Central Unit settles bills with BBPOU Biller Bank Ac.

Note- Anyone can be registered as customer Units, no restrictions as of now.

 

[phoenix1386]

I didn't understand, what you are saying .....

BBPS is an initiative by RBI to establish Integrated Bill Payment System as crores of rupees transacted for utility payments under several electronic payments.

Now, bill payment can be tracked by BBPS reference.

At Customer Unit or Biller or BBPOU ... any fraud happens BBPS will take Care. (Penalty or Ban will be imposed)

(BBPS, BBPCU )- NPCI .... A public non-profit company, an initiative of RBI and Financial Ministry.




Biller - Bill's managed by an BBPOU (Operating unit) - BBPOU shares bills info to Central Unit/NPCI - All Customer Units will help to process bills from customers by collecting money- Finally Central Unit settles bills with BBPOU Biller Bank Ac.

Note- Anyone can be registered as customer Units, no restrictions as of now.

What I am saying is, for how long may whoever is deemed to underwrite the transactions where, per 012, the bank gets the money regardless of the fraud amount being recovered or not, continue to underwrite such transactions?

If the bank keeps getting money that is not there due to fraud, do we understand what shall become imminent?

 

[Tejo]

How will banks know it's of fraud money or not ?

Banks - will know source of information, banks don't know purpose of transaction.

Only, after numerous complaints against the beneficiary by sender/bank. Then Only Beneficiary Bank will take action.

.......

Payments are carried by a payment gateway, any complaints will end up at payment gateway service providers.

Who raise complaints or witness fraud, be beneficiary.

Who is in busy or won't witness fraud be loser.

Fraudsters might come up with new company name or change payment gate way or change bank or change bank account.

 

[phoenix1386]

How will banks know it's of fraud money or not ?

Banks - will know source of information, banks don't know purpose of transaction.

Only, after numerous complaints against the beneficiary by sender/bank. Then Only Beneficiary Bank will take action.

.......

Payments are carried by a payment gateway, any complaints will end up at payment gateway service providers.

Who raise complaints or witness fraud, be beneficiary.

Who is in busy or won't witness fraud be loser.

Fraudsters might come up with new company name or change payment gate way or change bank or change bank account.

I understand the concerns. It is why I said in another post that societal education is needed, as are freedom and liberty. To tame the gamers, everyone suffers. That is just as unhealthy as gamers allowed to game for the benefit of genuine users.

 

[Abhishek012]

Actually, I mean "Raise of BBPS"

Bill desk chakar me "Raise of Billdesk" boldiya

Once check billdesk profits and BBPOU-payu (BBPS service alone, leaving pg services) profits.

Billdesk - They never entertained BBPS, even they are licensed BBPOU. Why @Abhishek012 ?

Transactions of UPI - cleared/processed by NPCI
Transactions of BBPS - cleared/processed by NPCI (BBPCU - Central Unit)

@Abhishek012 you have said BBPS is interoperable system like upi, Upi operational cost beared by Banks. So billers of BBPS are not billed for operational cost, else customers charged?

@Abhishek012
Payment aggregators are restricted to process directly with billers via directly or indirectly, is this not fall?
Now, Payment aggregators are entertained to process bills of BBPS billers, is this beneficial ?

Billers need to agree to all the conditions set by BBPCU and BBPOU

Billers are dependent on BBPOU

BBPOU are dependant BBPCU/NPCI

......

Previously, Biller - biller payment aggregator - bank ac under biller.

Now, Biller - BBPOU (Operating unit), BBPCOU (Customer unit), BBPCU (central unit), bank ac under bbpou.

@Abhishek012 how is this beneficial for a payment aggregator?

Bill desk on-boards billers as BBPOU and settles bills with biller bank ac.
But, here paytm, phonpe payu or others may get beneficial due to customer base.

While mentioning, UPSC @Abhishek012 why don't you say whole story of BBPS ?

Bro, merchant UPI is not free, including the bank account-linked Merchant UPI. The government has forcibly made it free. MDR (Merchant Discount Rate) is available on BBPS (Bharat Bill Payment System).

Most transactions on BBPS are done through Billdesk, see screenshots in my post. Billdesk is the number one BBPOU (Bharat Bill Payment Operating Unit).
The answers to your remaining questions can be understood as follows: Any transaction in the country should be under a centralized system.

As you may know, when we do UPI or IMPS transactions or any card transactions, later NPCI sends it to banks through RTGS. I hope you are aware of this, as I have mentioned it many times in the forum.

So if you question why RTGS should be done, it doesn't make sense. RTGS doesn't affect the business of any payment networks like UPI, IMPS, or Card transactions.

Similarly, BBPS works in the backend. In the front end, it is still payment gateways and banks.

One more thing, BBPS is For-Profit company, unlike other NPCI product.

 

[Abhishek012]

The whole copy-paste is classic system-speak, as may be expected.

But I want to discuss this.



Whether the money is recovered or not.

Anyone with even one half of the brain working just fine, should be able to see where this is going.

Bhai KAHAAN se sambhaalega agar paisa aaya nahi aur fir bhi aage de diya? Ye “bhai” to jhola utha ke chal dega.. bhugtenge log jab arthvyavastha khokhli ho jaayegi.

In English: Wherefrom shall the “brother” handle the situation wherein the money is not input but output? This “brother” would just pick up their sack and leave.. the sufferers shall be the people alone when the economy crumbles due to this newfangled tomfoolery.

Is this why “bad banks” were created, to just take money out of the system without actual replenishment?

I understand you completely believe in what you perpetrate on the masses on all forums, but not all would be ready with a backup plan when the facade comes crumbling down.

It is the responsibility of the learned to guard and protect those around them with truth and facts.

Bro, this is a completely different topic. Whether it's any kind of fraud or a company/bank going bankrupt, if the transaction is completed, the receiving bank/merchant will get the money.

It's not just NPCI; Visa, Mastercard, etc., also provide this guarantee.

You are talking about the transaction from the front end. I am talking about the back end here.

For example, think about if a fraud happens with your Kotak bank account through a UPI or card transaction.

The receiver bank for the UPI is Bank of Baroda, okay, or if it's a card transaction on Amazon, acquirer bank is HDFC.

Now, even if this fraud transaction and you filed an FIR complaint but receive bank - Bank of Baroda or HDFC bank will get the money the very next day after the transaction.

let's understand with another example -

You made an electricity bill payment through Amazon. Amazon uses the BBPOU operator BillDesk for BBPS payments.

Now, assume a few hours later or early the next morning, Amazon goes bankrupt, or BillDesk flees India and there is no money in its account.

But the bill payment was made. The payment to the biller needs to be settled, right? This is where NPCI guarantees that the biller will receive the money; NPCI will pay from its own pocket.

Now, the losses that occur will be dealt with later. This is why RBI requires PPI operators or payment gateways like Amazon or Billdesk to deposit a certain amount when issuing licenses. So that later, the money can be recovered from there.

I already said this is a completely different topic.

Kabhi kisi aur time aur detail me samjhenge ki kitne paise NPCI k member banks, shareholders kitne percentage dete hain aise fraud transaction me ya bankrupt ya moratorium etc me.

 

[Tejo]

NPCI will pay from its own pocket.

😅 we will know with the time.

 

[Pradumya]

My reaction


Iss thread ko read karte karte

 

[Tejo]

Bro, merchant UPI is not free

Most of the payment mode charges are of due to late settlement of the payment.

Not only due to MDR.

Bill desk, largest BBPS Operating unit is not charging for UPI payment mode either for BBPS billdesk txns nor for Non-BBPS billdesk transactions .....

Govt. Restricted for p2p UPI transactions only ... Free
BBPS/NPCI Restricted for UPI (non - cc upi & wallet upi) Transactions only ... Free

 

[Abhishek012]

😅 we will know with the time.

This has happened many times before, as I mentioned to @phoenix1386 I am not talking about front-side fraud. I am talking about the backend.

If any transaction is initiated, NPCI (RuPay/UPI/IMPS/BBPS/ATM-NFS), Visa, and Mastercard guarantee that it will be settled and the receiver bank and merchant will receive the money.

Visa/Mastercard also offer a package to merchants. Sorry, I forgot its name. International merchants have to pay a certain fee to Visa/Mastercard so that if any fraudulent transaction occurs, Visa/Mastercard will compensate the merchant.

RuPay has now joined EMVco, so it will offer the same type of package for international merchants.

Think of it as a type of insurance. It compensates the merchant for losses due to fraud, and Visa/Mastercard/RuPay also earn money from this.

As for BBPS, I don't know. I have never researched this, but it is possible. BBPS might also charge a certain fee from billers for fraud protection. If any fraud happens in the future, BBPS will compensate for it.

 

[Abhishek012]

Most of the payment mode charges are of due to late settlement of the payment.

Not only due to MDR.

Bill desk, largest BBPS Operating unit is not charging for UPI payment mode either for BBPS billdesk txns nor for Non-BBPS billdesk transactions .....

Govt. Restricted for p2p UPI transactions only ... Free
BBPS/NPCI Restricted for UPI (non - cc upi & wallet upi) Transactions only ... Free

BBPS operates differently. Billers pay a certain percentage of the transaction fee, which is distributed among the 3rd party apps, BBPS, BBPS Operating Unit, etc.

If someone makes a BBPS payment via UPI. the 3rd party apps, BBPS, and BBPS Operating Unit still receive a few percentage fee from the biller. The biller doesn't care which payment mode the customer used. The biller's connection is with BBPS and BBPS Operating Unit. Beyond that, the BBPS Operating Unit connects with third-party apps and customers.