Paytm Payments Bank, a digital banking service in India, has received final RBI approval to serve as the Bharat Bill Payment Operating Unit (BBPOU). Paytm Payments Bank will now operate as a BBPOU for bill payment and aggregation.
The Bharat Bill Payment System (BBPS), which is owned by NPCL, is an integrated bill payment system in India that provides customers with an interoperable and accessible bill payment service via a network of registered agents known as Agent Institutions, supports multiple payment modes, and provides instant payment confirmation.
The Bharat Bill Payment Operating Unit is a BBPS unit that provides bill payment services for electricity, phone, DTH, water, gas insurance, loan repayments, FASTag recharge, education fees, credit card bills, and municipal taxes.
Paytm Payments Bank has now been approved to operate as a BBPOU under the Payment and Settlement Systems Act, 2007. According to the RBI’s instructions, PPBL will list all agent institutions on its website and facilitate bill payments.
Regarding the approval from RBI, a Paytm Payments Bank spokesperson said,
Our vision is to drive financial inclusion by offering users greater access to digital services. With this approval, we will further increase the adoption of digital payments by merchant billers and enable them with secure, fast and convenient transactions. Through the Paytm app, users can make convenient payments for their bills and benefit from automatic payment and reminder services.