Now, credit card holders of major banks like HDFC Bank and Axis Bank will not be able to use third party apps CRED, PhonePe, Amazon Pay and Paytm to pay their outstanding bills.
Rule Change: The Reserve Bank of India (RBI) has made a major change in the rules regarding credit card dues payment. This change will be effective from July 1, 2024. The central bank has said that all credit card bill payments through third party applications should be made through Bharat Bill Payment System (BBPS), which is being managed by the National Payments Corporation of India (NPCI).
This means that credit card holders of major banks like HDFC Bank and Axis Bank will not be able to use third party apps like CRED, PhonePe, Amazon Pay and Paytm to pay their outstanding bills. This change has happened due to the banking institutions not being registered with the Bharat Bill Payment System (BBPS) platform.
What is BBPS?
Bharat Bill Payment System (BBPS) was developed by the Reserve Bank of India (RBI) to improve the payment collection process for businesses and customers. According to experts, BBPS enables customers to make payments easily through a network of physical outlets such as bank branches and collection stores as well as various digital channels such as apps and websites across the country.
No problem for the customers of these banks
There is no need to worry for the people having credit cards of State Bank of India (SBI), Bank of Baroda, Kotak Mahindra Bank and other major banks. These banks have registered with Bharat Bill Payment System (BBPS), which ensures that customers can easily use third-party apps for their payment needs.
Which banks are registered on BBPS?
SBI, Kotak Bank, IndusInd Bank, IDBI Bank, AU Small Finance, Canara Bank, Bank of Baroda, Federal Bank, ICICI Bank, Union Bank, Punjab National Bank and Saraswat Bank are registered on BBPS. The banks currently working on BBPS are Axis Bank, HDFC Bank, IDFC First Bank, Indian Bank, Indian Overseas Bank and Yes Bank etc.
What should credit card users do?
Users should first check whether their respective bank is currently operating on the Bharat Bill Payment System (BBPS) platform. This particular information can usually be found through the bank’s official website or available customer service communication channels. For customers whose banks are not yet registered with BBPS, they should use alternative payment systems to guarantee timely settlement of bills and avoid any penalties due to late payments.
