RBI’s Recent Regulation: Paying Credit Cards Bills Via PhonePe, Cred, BillDesk, and Infibeam May Be Impacted

GG News Bureau

New Delhi, 22 June. Following the implementation of the RBI’s most recent regulation, which mandates that credit card bill payments be made through a centralised billing network, on July 1, a number of significant fintechs, including PhonePe, Cred, BillDesk, and Infibeam avenues, may be impacted, as reported by the Economic Times.

Prior to June 30, the Reserve Bank of India mandated that all credit card payments be made via the Bharat Bill Payment System (BBPS).

At this time, BBPS has not been enabled by HDFC Bank, ICICI Bank, or Axis Bank. Customers have received credit cards from these banks totaling more than 5 crore. Fintech companies that are already members of BBPS, such as PhonePe and Cred, would also be unable to handle payments on credit card dues on their behalf after June 30 due to the lenders’ noncompliance with the directives. For these innovations to run smoothly, lenders must adhere to RBI regulations till June 30.

“The payments industry has requested a 90-day extension of the deadline,” the head of a significant payments company was reported by Economic Times.

Out of the 34 banks that are authorized to issue credit cards, just eight banks have enabled bill payments on BBPS as of right now, according to the ET article. Federal Bank, IndusInd Bank, Kotak Mahindra Bank, SBI Card, and BoB Card are among the lenders who have enabled BBPS.

Industry participants stated that in addition to helping the RBI identify and stop fraudulent transactions, it also intends to give the central bank greater insight into payment patterns.

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