HDFC, Axis, and Yes Bank among 6 lenders seeking RBI relaxation on credit card payments via Cred, PhonePe

Banks seek one-month extension for BBPS activation to streamline credit card payments via third-party apps

Six 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 had directed that all credit card payments must be processed through the centralized payment system Bharat Bill Payment System (BBPS) after June 30. However, as of July 5, six banks have not complied with the RBI’s circular. These banks include 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 stated. The Indian Banks’ Association (IBA) is reportedly liaising with the RBI on the matter.

Meanwhile, a total of 12 banks have already activated their BBPS. These include 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.

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 centralized billing network.

Industry players said that the RBI aims to gain better visibility on payment trends. It could improve its ability to track and resolve fraudulent transactions through the centralized payment system.

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