Paytm Payments Bank on Monday said it has received final approval from the Reserve Bank of India to operate as a Bharat Bill Payment Operating Unit (BBPOU).
A BBPOU is permitted to provide bill payment services for electricity, phone, DTH, water, gas insurance, loan repayments, FASTag recharge, school fees, credit card bill, and municipal taxes under the Bharat Bill Payment System (BBPS).
The National Payments Corporation of India owns BBPS.
Paytm Payments Bank Ltd. (PPBL) has been conducting this activity so far with RBI's in-principle approval.
"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.
According to RBI's instructions, PPBL will list all of the onboard agent institutions on its website.
"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 with 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," a Paytm Payments Bank spokesperson said.
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