Indian government to support free e-payments on Bharat Bill Pay

Friday 2 September 2022 12:01 CET | News

The Indian government has announced its support for free electronic payments under Bharat Bill Pay Systems and might take action against uncomplying entities.


According to an unnamed official cited by, the Indian government wants to keep the unified payments interface as a free-of-charge service, and companies that do not comply might end up being reviewed and acted against by the Indian Banks' Association (IBA) and National Payments Corporation of India (NPCI).

According to the same official, the Indian government regards the unified payments interface (UPI) platform as a digital public good and there will be no charge for its services.

In August 2022, some apps have begun to charge platform fees for bill payments through BBPS. The National Payments Corporation of India (NPCI), an umbrella organisation for operating retail payments and settlement systems in the country, objected to this and asked them to stop this practice. As far as cost recovery is concerned, government officials noted that these should be met through other means.

Companies such as PhonePe and Paytm have each issued statements and have already stopped charging these platform fees. 


The Indian government has announced its support for free electronic payments under Bharat Bill Pay Systems and might take action against uncomplying entities.


Some background on the Bharat Bill Pay System

Bharat Bill Payment System (BBPS) is a Reserve Bank of India (RBI) conceptualised system driven by the National Payments Corporation of India (NPCI). The system provides interoperable and accessible bill payment services to consumers through digital channels and through a network of agents & bank branches.

The system supports recurring payments such as electricity, telecom, gas, water, DTH, loan repayments, insurance, municipal taxes, housing society costs, subscription fees, education fees, and FASTag. 

When it comes to payment methods, users can pay their bills using cash, credit, debit and prepaid cards, digital wallets, internet banking, UPI, Immediate Payment Service (IMPS) and Aadhaar Enabled Payment System (AEPS).

BBPS transactions can be initiated through digital channels such as internet banking, mobile banking, Point of Sale terminals and KIOSK, or through offline channels such as ATMs, bank branches, and business correspondents.

All clearing and settlement activities related to transactions routed through BBPS are overseen by the Bharat Bill Payment Central Unit (BBPCU), which is also responsible for setting business standards, rules, and procedures for technical and business requirements for all participants.

While electronic transactions performed at the customer’s own bank have no charges, transactions done at physical outlets or bank branches incur a convenience fee.

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Keywords: online payments, recurring payments, payment methods, payments infrastructure, online banking e-payment
Categories: Payments & Commerce
Companies: Bharat Bill Pay
Countries: India
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