Paytm Payments Bank get RBI’s approval to operate as a BBPOU: What is it – Times of India
Digital payments company Paytm helps users with making payments, paying bills and other financial services. Paytm’s Payments Bank platform is India’s only mobile-first bank where users can open accounts with zero balance and zero digital transaction charges. Under the Paytm Payments Bank, the company offers a Paytm wallet and Savings bank account services to its users. Now, Paytm has confirmed that it has received final approval from the Reserve Bank of India (RBI) to operate as a Bharat Bill Payment Operating Unit (BBPOU).
What is a BBPOU
BBPOU platforms are allowed to facilitate bill payment services for — electricity, phone, DTH, water, gas insurance, loan repayments, FASTag recharge, education fees, credit card bills and municipal taxes. A BBPOU works under the Bharat Bill Payment System (BBPS) which is owned by the National Payments Corporation of India (NPCI). Until now, Paytm Payments Bank Ltd (PPBL) was undertaking this activity under an in-principle authorisation from the RBI.
How will it work
According to a report by The Economic Times, the company has confirmed that PPBL has got the final approval from RBI to operate as BBPOU under the Payment and Settlement Systems Act, 2007. Being a BBPOU which is an entity under the Bharat Bill Payment System (BBPS), PPBL has got the final authorisation to conduct bill payment and aggregation business. As per RBI’s guidelines, PPBL will now display all agent institutions that the company has taken on board on its platforms.
What is a BBPOU
BBPOU platforms are allowed to facilitate bill payment services for — electricity, phone, DTH, water, gas insurance, loan repayments, FASTag recharge, education fees, credit card bills and municipal taxes. A BBPOU works under the Bharat Bill Payment System (BBPS) which is owned by the National Payments Corporation of India (NPCI). Until now, Paytm Payments Bank Ltd (PPBL) was undertaking this activity under an in-principle authorisation from the RBI.
How will it work
According to a report by The Economic Times, the company has confirmed that PPBL has got the final approval from RBI to operate as BBPOU under the Payment and Settlement Systems Act, 2007. Being a BBPOU which is an entity under the Bharat Bill Payment System (BBPS), PPBL has got the final authorisation to conduct bill payment and aggregation business. As per RBI’s guidelines, PPBL will now display all agent institutions that the company has taken on board on its platforms.
A Paytm Payments Bank spokesperson has said that the company wants to drive financial inclusion by offering users greater access to digital services. With RBI’s approval, Paytm will further increase the adoption of digital payments by merchant billers and enable them to make “secure, fast and convenient transactions.” Users can make payments for their bills and can take advantage of features like — automatic payment and reminder services via the Paytm app.
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