Now you will not be able to pay credit card bill through third party app? Know the new rule

Bharat Bill Payment System: If you pay your utility bill through credit card through fintech app, then you may face problems from today i.e. July 1. Actually, the customers of banks and credit card issuing companies who are not registered on RBI's Bharat Bill Payment System (BBPS) will not be able to pay bills through fintech app. According to the new regulation of RBI, from July 1, all credit card bills should be paid through Bharat Bill Payment System i.e. BBPS. From now on, everyone will have to do billing through Bharat Bill Payment System (BBPS).

Such customers will not be able to pay

According to Business Standard, from today, credit card holders of major banks including HDFC Bank, ICICI Bank and Axis Bank will no longer be able to pay their bills through third party apps like Cred, PhonePe, Amazon Pay and Paytm as they are not registered on the Bharat Bill Payment System (BBPS). Those with credit cards issued by SBI, Bank of Baroda, Kotak Mahindra Bank and others need not worry. These banks are already on the BBPS platform, so customers can continue to use third party apps for payments.

Includes several types of payments

Designed as a one-stop window under the RBI and operated through the National Payments Corporation of India (NPCI), the BBPS offers several categories. This includes utility bill payments for insurance premiums, mutual funds, and credit card payments. For example, credit card users can pay their monthly bills through netbanking, auto-debit mandates, or third-party applications. The first two methods will continue even after June 30, the third process will be halted, unless an extension is given.

Transactions may decline

Fintechs fear they may face a major drop in transaction volumes after the Reserve Bank of India directed that all credit card payments after June 30 be processed through BBPS, industry executives told ET.

Payment Platform

From July 1, 2024, there may be problems in bill payment through some payment platforms. These platforms include some fintechs like CRED, PhonePe, BillDesk. According to the new regulation of RBI, from July 1, all credit card bill payments should be made through Bharat Bill Payment System i.e. BBPS. From now on, everyone will have to do billing through Bharat Bill Payment System (BBPS).