HDFC Bank, Axis Bank, IDFC Bank, Indian Bank, Indian Overseas Bank, and Yes Bank have not yet activated BBPS.According to industry players in the know of the matter, banks are expecting a one-month relaxation from the Reserve Bank of India (RBI) to complete the BBPS activation processSix major banks, including HDFC Bank, Axis Bank, and Yes Bank, have not yet activated their Bharat Bill Payment System (BBPS) for receiving credit card bill payments via third-party apps like Cred, PhonePe, and Paytm, five days after the RBI’s June 30 deadline passed. According to industry insiders, banks are expecting a one-month relaxation from the Reserve Bank of India (RBI) to complete the BBPS activation process.The Reserve Bank of India earlier directed that all credit card payments must be processed through the centralised payment system Bharat Bill Payment System (BBPS) after June 30.According to the industry players, till July 5, six banks have not yet complied with the RBI’s circular, five days after the June 30 deadline has passed. These banks are HDFC Bank, Axis Bank, IDFC Bank, Indian Bank, Indian Overseas Bank, and Yes Bank.“The banks are expecting one-month relaxation from the RBI as they had put in place systems to go live on the BBPS and the process is taking time,” an industry insider told news18.com.According to a Business Standard report, the Indian Banks’ Association (IBA) is liaising with the RBI on the matter.A total of 12 banks have already activated their BBPS. These are Kotak Mahindra Bank, Punjab National Bank, ICICI Bank, IDBI Bank, AU Bank, Bank of Baroda, Canara Bank, Federal Bank, IndusInd Bank, Saraswat Bank, SBI, and Union Bank.How Are Cred, PhonePe Allowing Credit Card Bill Payments for Non-Compliant Banks?For non-compliant banks such as HDFC Bank and Axis Bank, third-party apps like Cred and PhonePe are using alternative methods like IMPS, NEFT, and UPI to process payments. For banks that have activated BBPS, such as SBI and Kotak Mahindra Bank, these fintech platforms are routing payments through the centralised billing network.Why Has RBI Mandated Centralised Payment of Credit Cards?Industry players said that the RBI aims to gain better visibility on payment trends and improve the ability to track and resolve fraudulent transactions through the centralised payment system.Mohammad HarisHaris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experi…Read More