Paytm Payments Bank has received final approval from the Reserve Bank of India to operate as a Bharat Bill Payment Operating Unit (BBPOU). The announcement came on Monday, following which, BBPOU will now be 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.
So far, Paytm Payments Bank Ltd (PPBL) had been undertaking this activity under in-principle authorization from RBI. Under the regulator’s guidance, PPBL will display all Agent institutions onboarded on its website. It will also make concerted efforts to onboard more billers in the approved categories on the BBPS platform, which is owned by the National Payments Corporation of India.
“PPBL has got the final approval from RBI to operate as Bharat Bill Payment Operating Unit (BBPOU) under the Payment and Settlement Systems Act, 2007. As an entity under Bharat Bill Payment System (BBPS), PPBL has got the final authorization to conduct bill payment and aggregation business as a BBPOU,” the company said in a statement.
A Paytm Payments Bank Ltd spokesperson said, “our vision is to drive financial inclusion by offering users greater access to digital services. With this approval, we will further increase the adoption of digital payments by merchant billers and enable them to secure, fast, and convenient transactions. Through the Paytm app, users can make convenient payments for their bills and benefit from automatic payment and reminder services.”
BBPS is an ecosystem conceptualized by RBI and led by NPCI. It provided an interoperable and accessible bill payments service including electricity, phone, DTH, water, gas insurance, loan repayments, FASTag recharge, education fees, credit card bills, and municipal taxes. With the new move, Paytm users can pay for services in a seamless, secure, and superfast manner.