Mumbai: Credit cards users of some banks may be facing problems in paying credit card bills through third party apps. This is because, the Reserve Bank of India (RBI) has mandated that all credit card bill payments should be processed through the centralised payment system Bharat Bill Payment System (BBPS) after June 30.
Recently, the Telangana Southern Power Distribution Company Limited (TGSPDCL) asked customers to pay their monthly electricity bills through the power utility’s official website and mobile app as it stopped accepting bills through apps such as PhonePe and Paytm.
Bankers, however, downplayed the impact and said that their customers can use the bank’s mobile app, netbanking facilities such as NEFT, IMPS or use the auto debit facility for paying credit card bills.
According to reports, for non-compliant banks such as HDFC Bank and Axis Bank, third party apps such as Cred and PhonePe are using alternative methods like IMPS, NEFT, and UPI to process payments. For banks that have activated BBPS, such as SBI, BoB Card, IndusInd Bank, Federal Bank, and Kotak Mahindra Bank, these fintech platforms are routing payments through the BBPS.
Private lender ICICI Bank a day earlier went live on BBPS providing relief to its credit card customers. Thus now there are 12 banks that have activated BBPS.
Said an official of a non-compliant Bank, “I don’t see any major disruption this month as credit card customers can use the Bank’s app, our website or auto debit instruction. We will go live soon but can’t comment on the timeframe right now.”
So far top credit card players such as HDFC Bank, Axis Bank besides Yes Bank, IDFC Bank, Indian Overseas Bank, Indian Bank have not complied with the RBI mandate and are still working on integrating with BBPS.
