From July 1, PhonePe, Cred, BillDesk and Infibeam Avenues are some of the major fintechs that will be affected after the RBI’s regulation requiring credit card bill payments to be routed through a centralised billing network comes into force . After June 30 Reserve Bank of India directed that all credit card payments must be processed through the Bharat Bill Payment System. After June 30, lenders have not yet complied with the directions, fintechs like PhonePe and Cred, which are already members of BBPS, will also not be able to process payments on credit card dues for them so, lenders need to comply with the RBI norms till June 30. Over 34 banks only 8 banks have activated bill payments on BBPS. The chief of a major payments firm informed that payments industry has sought extension of the deadline by 90 days.
Why Has RBI Mandated Centralised Payment of Credit Cards?
It’s aims to provide the RBI with better visibility on payment trends, apart from allowing the central bank to track and resolve fraudulent transactions said by industry players.
