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RBI panel recommends Indian Bill Payment System

The RBI has invited comments from the public by June 15 on the recommendations of the committee before looking into their implementation

May 08, 2013 8:20 IST | India Infoline News Service
The Reserve Bank of India (RBI) committee on Tuesday recommended ‘India Bill Payment System’ (IBPS), a GIRO-based electronic bill payment system for payment of dues of essential services, insurance premium, utility payments, taxes, university fees, examination fees and school fees.

The committee released the report set up to study the feasibility of implementation of GIRO based payment systems in India. The committee has highlighted the need for developing an electronic bill payment system based on a GIRO model for payment of dues of essential services, insurance premia, utility payments, taxes, university fees, examination fees, school fees, etc. This model will enable the setting up of a centralised infrastructure bringing all the billers and banks to the bill platform through the aggregators. It will also allow interoperability in the bill payment process and enable the consumers to make payments at any of the collection points which is the essence of GIRO system.

The committee has made major recommendations pertaining to a) setting up of the Indian Bill Payment System (IBPS) which would be the centralised infrastructure connecting billers through the aggregators and the customers through the customer service points, for management of all  bill payments; b) Extending the IBPS value chain of banks, non-banks, billers and aggregators, etc.; c) Bill data codification and presentment; d) process of settlement; e) Roles and responsibilities of stakeholders; and f) Customer support  and redressal mechanism.

GIRO payment is a credit push transaction initiated by the payer and may involve the presence of three banks (collecting bank, payer bank and the payee bank). Bill paying public/customers can access any payment channel through banks/non-bank entity under the proposed GIRO system.

The Committee had representations from select banks, card payment networks, industry associations, viz. Internet and Mobile Association of India (IAMAI), Federation of Indian Chambers of Commerce and Industry (FICCI) and Indian Banks’ Association (IBA). The Committee also solicited views/comments of the stakeholders from outside the committee members.

The RBI has invited comments from the public by June 15 on the recommendations of the committee before looking into their implementation.

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