Spice Digital gets RBI licence to operate under BBPS

• Spice Digital Limited (SDL) has received the final licence from the Reserve Bank of India (RBI), allowing the company to process bill payments as a Bharat Bill Payment Operating Unit (BBPOU) in the Bharat Bill Payment System (BBPS).

What is Bharat Bill Payment System (BBPS)?

• It is a RBI mandated bill payment system which will offer interoperable and integrated bill payment services to customers across geographies with reliability, certainty and safety of transactions through a network of agents enabling multiple payment modes and instant payment confirmation.

BBPS Participants:

• Two primary participants who will be carrying out distinct functions under BBPS are:
• Bharat Bill Payment Central Unit (BBPCU) : It will be a single authorized entity operating the BBPS and will be responsible for setting requisites operational, technical and business standards for the entire system and its participants, will also undertake clearing and settlement activities. National Payments Corporation of India (NPCI) has been authorised to act as BBCPU for the implementation of the BBPS.
• Bharat Bill Payment Operating Units (BBPOUs) : These will be the operational units authorized by RBI to function in adherence with the standards set up by the BBPCU. There will be multiple BBPOUs operating in accordance with the BBPCU. BBPOUs will comprise of Banking as well as Non-banking entities. They will be operating under a tiered structure which will be further strengthened via an agent network through agent institutions.Bharat Bill Payment System participants-stake-holders-pic
• In addition to the above participants there will be more participants connected to the BBPCU through BBPOUs.

These participants may be from the agent side BBPOUs or the biller side BBPOUs and includes the following:

• Agent
• Customer
• Agent Institutions
• Billers
• Sub-Biller
• Sponsor Banks

By: Vishal