homefinance NewsMore competition for Gpay, Paytm soon? RBI lowers BBPS net worth requirement sharply

More competition for Gpay, Paytm soon? RBI lowers BBPS net worth requirement sharply

The RBI in a bid to facilitate greater penetration of bill payments online has proposed to reduce the net worth requirement of such entities from Rs 100 crore to Rs 25 crore.

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By CNBCTV18.com Apr 8, 2022 12:22:42 PM IST (Published)

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More competition for Gpay, Paytm soon? RBI lowers BBPS net worth requirement sharply
The Reserve Bank of India, in a bid to encourage greater penetration of bill payments through its Bharat Bill Payment System (BBPS), has proposed to lower the net worth requirement of such entities from Rs 100 crore to Rs 25 crore.

This will mean that launching a payment app will be easier now and thus one can expect more competition for players like Paytm, Gpay, Phonepe etc.
In the monetary policy announcement, RBI Governor Shaktikanta Das said that BBPS, an interoperable platform for bill payments, has seen an increase in the volume of bill payments and billers over the years.
"To further facilitate greater penetration of bill payments through the BBPS and to encourage participation of a greater number of non-bank Bharat Bill Payment Operating Units in the BBPS, it is proposed to reduce the net worth requirement of such entities from Rs 100 crore to Rs 25 crore." read the announcement.
The RBI Governor also announced that cardless cash withdrawal using UPI will now be extended and made available at all bank branches and ATMs via UPI to prevent fraudulent transactions. Read more on this here.
Das also said that the RBI will review customer service standards in RBI regulated entities.
“In view of the transformation underway due to the innovations, products and services and deepening of the digital penetration and emergence of different service providers, it is proposed to set up a committee to examine and review the current state of customer service in all the RBI regulated entities," he said.
Das was addressing the first Monetary Policy Committee (MPC) statement for the financial year 2022-2023 and kept the benchmark interest rate unchanged at 4 percent and decided to continue with its accommodative stance despite rising inflation.

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