Weeks after the utility Southern Power Distribution Company of Telangana stopped accepting online payment through service providers like PhonePe, Google Pay and banks citing an RBI directive, the apex bank has clarified its position. “The Reserve Bank has not stopped any biller including TGSPDCL from using third-party interfaces. Instead, such entities providing third-party interfaces should require authorisation from RBI, before carrying out the bill payment function outside BBPS,” is the response to a Right to Information application filed with the Central bank.
The RBI response to the RTI application refers to a master direction of “Bharat Bill Payment System (BBPS) Directions”. This direction adds another layer of paperwork for the utility requiring it to get an authorisation. The RBI has authorised NPCI Bharat Bill Pay Limited (NBBL - a wholly owned subsidiary of National Payments Corporation of India) as a payment system provider. Unless the TGSPDCL gets the authorisation, it cannot use the service providers for bill collection.
On July 1, 2024, the electricity utility had released a statement about unacceptance of bill payments through service providers.
“Dear Consumers, as per the RBI directions, the Service Providers viz., PhonePe, Paytm, Amazon Pay, Google Pay and Banks have stopped to accept the electricity bills of TGSPDCL w.e.f. 01/07/2024. Hence, all the consumers are requested to make the monthly current bill payments through TGSPDCL Website/TGSPDCL Mobile App please.”
The sudden shut down of bill collection through the service providers which occasionally gave discounts for payment using the service has not gone down well with users.
“The central bank takes the most absurd decisions in the country for reasons known only to them, on one side the PM takes credit for UPI in India, and on the other hand, the RBI stops UPI payments for a commodity. Brilliance!” wrote a social media user Vijayanand Katıkla summing up the mood.
