Major Changes in Credit Card Bill Payments for Indian Banks
Starting July 1, customers holding credit cards from leading banks such as HDFC Bank and Axis Bank will no longer be able to utilize third-party apps like CRED, PhonePe, Amazon Pay, and Paytm to clear their credit card bills. This alteration is a result of the incompatibility of these apps with the Bharat Bill Payment System managed by the National Payments Corporation of India (NPCI). This means cardholders must make their credit card bill payments through different channels or directly through the banks’ platforms.
Impact on Credit Card Bill Payments in India
- The Reserve Bank of India (RBI) has mandated that all credit card payments be funneled through the Bharat Bill Pay System from July 1, 2024, affecting credit card bill payments significantly.
- Fintech businesses like Cred, PhonePe, and BillDesk are getting ready for substantial disruptions as a consequence of this change.
- HDFC Bank and Axis Bank, who have a significant number of credit cards, have yet to enable the Bharat Bill Payment System (BBPS).
- Fintech companies like Cred and PhonePe will no longer handle card dues for these banks or any other BBPS member platform.
- Transaction volumes are expected to see a substantial decrease, according to industry insiders.
Options for Credit Cardholders
Credit cardholders have three main alternatives for paying their monthly bills:
- Auto-debit requirements
- Netbanking (NEFT or IMPS)
- Third-party apps, which will no longer be an option after June 30
While the third-party application method will cease after June 30, the first two modes of payment will remain valid.
List of Banks on Bharat Bill Payment System
As of July 3, 2024, here is the breakdown of banks live on the Bharat Bill Payments system under the credit card category:
- Banks Already Integrated: SBI, Union Bank, AU Small Finance Bank, Bank of Baroda, Canara Bank, Federal Bank, ICICI Bank, IDBI Bank, IndusInd Bank, Kotak Mahindra Bank, Punjab National Bank, Saraswat Bank
- Banks Still in the Integration Process
Understanding the Bharat Bill Payment System
The Bharat Bill Payment System (BBPS) is a system mandated by the RBI that provides integrated and interoperable bill payment services to customers with the assurance of transaction certainty, reliability, and safety.
FAQs for Credit Card Payments on BBPS
Here are some essential FAQs related to credit card payments on the BBPS:
- Which Credit Cards are Supported?
As of July 1, 2024, credit card bill payments are only supported for banks registered on the Bharat Bill Payments System. - Non-Registered Banks
Payments for credit cards issued by banks not on the BBPS will not be accepted. Updates will be provided as soon as these banks join the BBPS. - Previous Payments
Transactions for non-BBPS banks that are in progress will be completed. Status updates typically occur within 48 hours. - Refunds and Cashbacks
Refunds and cashbacks from previous credit card bill payment transactions will be processed following standard timelines.
Hot Take: Stay Informed about Credit Card Bill Payments
As a crypto enthusiast interested in financial systems, it is crucial to stay updated on the evolving landscape of credit card bill payments in India. The recent changes initiated by major banks regarding the use of third-party applications for settling credit card bills underscore the importance of understanding and adapting to new payment methods. Keep abreast of the latest developments to ensure smooth management of your credit card finances.
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