REGULATORY FRAMEWORK FOR BHARAT BILL PAYMENT SYSTEM (BBPS) | Current Affairs | Vision IAS
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    • March 2024

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    Posted 15 Apr 2024

    23 min read

    REGULATORY FRAMEWORK FOR BHARAT BILL PAYMENT SYSTEM (BBPS)
    • Reserve Bank of India (RBI) issued revised regulatory framework of the BBPS.
    • RBI has revised the framework in exercise of powers conferred by the Payment and Settlement Systems Act, of 2007.
    • The revised framework seeks to streamline the process of bill payments, enable greater participation, and enhance customer protection.
    • About BBPS: It is an integrated online platform that is being developed by the National Payments Corporation of India (NPCI) for all kinds of bill payments. 
      • It intends to build an interoperable service through a network of agents, enabling multiple payment modes along with instant generation of receipts of payments.
      • Operates as a tiered structure with NPCI Bharat Bill Pay Ltd (NBBL) as a Central Unit (BBPCU), and Bharat Bill Payment Operating Units (BBPOUs) as operational units.
        • A BBPOU may function either as a Biller Operating Unit (BOU) or a Customer Operating Unit(COU) or both.
    • Regulatory framework of BBPS
      • Enable non-bank payment aggregators (PAs) to participate in the system as operating units.
      • BBPCU will set the rules and regulations governing participation criteria and system operations, in addition to the technical standards for participation in the system. 
      • COU will provide digital or physical interface to their customers. 
      • BOU will be responsible for onboarding billers to BBPS.
    • Tags :
    • NPCI
    • BBPS
    • Payment and Settlement Systems Act, of 2007

    PREPAID PAYMENT INSTRUMENTS (PPIs)
    • Reserve Bank of India has allowed banks and non-banks to issue PPIs for public transit services.
    • PPIs will contain “Automated Fare Collection” application related to toll collection, parking etc.
    • About PPIs
      • Payment instruments that facilitate purchase of goods and services against the value stored on such instruments. 
      • Issued as smart cards, internet wallets etc.
      • While these instruments can be reloaded, withdrawing cash, refund, or fund transfer will not be permitted in PPIs.
      • Cash loading to PPIs shall be limited to Rs.50,000 per month subject to overall limit of PPI.
    • Tags :
    • Automated Fare Coll
    • Prepaid Payment Instruments (PPIs)

    SEBI BOARD MEETING CONCLUDED WITH MAJOR APPROVALS
    • 204th meeting of the SEBI (Securities and Exchange Board of India) Board concluded with some major approvals
    • SEBI announced launch of Beta version of optional T+0 settlement for limited scrips and brokers.
      • T+0 settlement allows both funds and securities transactions to be settled on same day when the trade is initiated.
      • Presently, Indian securities market operate on T+1 settlement cycle. 
    • Enhancing Ease of Doing Business (EoDB) for Foreign Portfolio Investors (FPIs):
      • Exempted additional disclosure requirements for FPIs holding more than 50% of their India equity Assets Under Management (AUM) in a single corporate group.
      • Relaxed timelines for the disclosure of material changes to their designated depository participant (DDP). 
      • FPI registrations that expire due to non-payment of registration fee, shall be permitted to be reactivated within 30 days.
    • Facilitating EoDB for companies coming for Initial Public Offering (IPO)s (process for company to be publicly listed):
      • Doing away with requirement of 1% security deposit in public/rights issue of equity shares.
      • Change in size of offer for sale shall be based on only either issue size in rupees or number of shares. 
    • Enhancing trust in AIF (Alternative Investment Fund) ecosystem  by  introducing due  diligence measures for investors and investments.
      • AIF is a privately pooled investment vehicle which collects funds from investors for the purpose of investing. 

    Foreign Direct Investment (FDI) vs FPI

    • FDI is an investment by a person resident outside India in an unlisted Indian company or in 10% or more of its paid up equity capital of a listed Indian company. 
    • FPI is an investment by a person resident outside India in equity instruments (shares, debentures etc.) where such investment is less than 10% of paid up equity capital of a listed Indian company.

    Related news

    SEBI Index Providers Regulations, 2024

    • Through the 2024 regulation, SEBI has mandated registration of index providers managing “significant indices” based on securities listed in India.
      • ‘Index Provider’ means  a person  who  controls  the creation,  operation  and administration  of  a Benchmark or  an  Index
    • This will foster transparency in the governance index in the securities market.
    • About Index
      • An index measures the price performance of a basket of securities using a standardized metric and methodology.
      • Indexes in financial markets are often used as benchmarks to evaluate an investment's performance against.
      • Nifty 50 and the Nifty PSU Bank, etc. are some important indexes in Indian markets.
    • Tags :
    • T+0 settlement
    • SEBI
    • Initial Public Offering (IPO)s
    • Alternative Investment Fund

    PRADHAN MANTRI SAMAJIK UTTHAN EVAM ROZGAR ADHARIT JANKALYAN (PM-SURAJ) PORTAL

    • Prime Minister launched one-stop PM-SURAJ portal for credit schemes for marginalized sections.
    • About PM-SURAJ Portal
      • Nodal Ministry: Ministry of Social Justice and Empowerment (MoSJE).
      • Objective: Uplifting most marginalized sections of society and supporting credit assistance to one lakh entrepreneurs hailing from disadvantaged communities.
      • Credit support will be provided to eligible persons across country, facilitated through banks, Non-Banking Financial Company-Micro Finance Institutions’ (NBFC-MFIs), and other organisations.
    • Tags :
    • Employment
    • PM-SURAJ Portal
    • Inclusive developement

    PROJECT GAIA
    • Central banks unveiled Project Gaia to evaluate climate financial risks.
    • About Project Gaia
      • It is a collaboration between the Bank for International Settlements Innovation Hub Eurosystem Centre, Bank of Spain, etc.
      • It leverages generative artificial intelligence (AI) particularly Large Language Models(LLMs) to facilitate the analysis of climate-related risks in the financial system.
      • Benefits
        • Can examine firm carbon emissions, green bonds, and optional net-zero commitment disclosures.
        • Enhanced accessibility to climate-related disclosures, Efficient data extraction, Harmonised climate metrics, Scalability and reliability.
    • Tags :
    • Project Gaia
    • Climate financial risks

    ‘VOCAL FOR LOCAL’ INITIATIVE BY NITI AAYOG
    • NITI Aayog Launches ‘Vocal For Local’ Initiative Fostering Grassroots Entrepreneurship and Self- reliance.
    • Key Highlights of Initiative
      • Launched under: Aspirational Blocks Programme (ABP). 
      • Aim: Encouraging a spirit of self-reliance among people of Aspirational Blocks, propelling them towards sustainable growth and prosperity.
        • It will bolster local economies and also drive inclusive growth. 
      • Implementation: Government e-marketplace (GeM) and Open Network for Digital Commerce (ONDC) platforms will provide support to entrepreneurs for e-commerce onboarding, establishing linkages, enhancing financial and digital literacy, etc. 
      • ‘Aakanksha’window on GeM portal: Created for showcasing indigenous local products from 500 ABP. 
    • About ABP
      • Genesis: Launched in 2023 by NITI Aayog, ABP is built on the success of the Aspirational Districts Programme (ADP).
      • Focus: Improving governance to enhance the quality of life of citizens in the most difficult and relatively underdeveloped blocks of India.
      • Coverage: 500 blocks from 27 states and 4 UTs 
      • Progress monitoring: Across 40 socio-economic indicators under 5 themes (refer to the infographic)
      • Programme strategy:
        • Convergence (of Central and state Schemes)
        • Collaboration (between NITI Aayog, Central Ministries, State Departments, District and block Administration)
        • Competition among blocks driven by a spirit of mass Movement

    About ADP

    • ADP was launched in 2018 and initially covered 112 most under-developed districts across the country.
    • With States as the main drivers, this program focuses on the strength of each district, identifying low-hanging fruits for immediate improvement and measuring progress by ranking districts every month.
    • Tags :
    • Vocal For Local
    • Grassroots Entrepreneurship
    • Aspirational Districts Programme (ADP)
    • Aspirational Blocks Programme (ABP)

    INVESTOR INFORMATION AND ANALYTICS PLATFORM (IIAP)
    • Union Minister of State for Electronics and IT launched IIAP developed by IIT Madras.
    • About IIAP:
      • It will act as a one-stop shop for startups to seamlessly access Venture Capitalists (VCs) and investor networks, Govt schemes, etc.
      • Entrepreneurs can search for information on government agencies, incubators, investors, VCs, etc.
      • An important feature of the platform is “StartupGPT” which is an AI-based conversational platform.
      • It will ease information access for those who are navigating exhaustive data.
    • Tags :
    • Startups
    • StartupGPT
    • IIAP
    • Venture Capitalists

    REMISSION OF DUTIES AND TAXES ON EXPORTED PRODUCTS (RODTEP) SCHEME
    • Centre has extended RoDTEP scheme to- 
      • Advance Authorisation Holders: Refers to manufacturer exporters or merchant exporters tied to supporting manufacturer.
      • Special Economic Zones Units: Designated duty-free enclave to be treated as a territory outside the customs territory of India.
      • Export Oriented Units: Defined under Foreign Trade Policy as units undertaking to export their entire production of goods and services (with some exceptions). 
    • RoDTEP was launched by Ministry of Commerce and Industry in 2021 for refunding various embedded taxes and duties on exported products.
    • Tags :
    • RoDTEP scheme
    • Ministry of Commerce and Industry

    INTEGRATED RATING AND RANKING OF DISCOMS
    • Ministry of Power released 12th Annual Integrated Rating and Ranking of Power Distribution Utilities (DISCOMs)
      • It is conducted with the Power Finance Corporation as the nodal agency and rates the performance of 55 DISCOMs.
    • Key Highlights:
      • AT&C losses improved to 15.4% in FY23, reaching closer to national goal of 12-15%. 
      • Billing Efficiency improved to 87% and Collection Efficiency remained high at 97.3%.
      • Average power purchase cost increased by 71 paise/kWh during FY23, driven by growth in power demand, more expensive coal imports and higher exchange prices.
      • Subsidy disbursals by state governments crossed 100% with a few states supported financial losses of discoms through subsidy grants.
    • Tags :
    • DISCOMs
    • Power Distribution Utilities

    ‘E-KISAN UPAJ NIDHI’ OF WDRA LAUNCHED
    • Ministry of Consumer Affairs, Food & Public Distribution launches ‘e-Kisan Upaj Nidhi’.
    • e-Kisan Upaj Nidhi is a Digital Gateway initiative of Warehousing Development and Regulatory Authority (WDRA). 
    • It aims to facilitate farmers in obtaining post-harvest loans from banks against their stocks stored in the WDRA registered warehouses.
      • The loans are provided against electronic negotiable warehouse receipts or e-NWRs. 
    • About WDRA
      • WDRA was established in 2010 under the WDRA Act, 2007.
      • The mission of the Authority is to: 
        • Establish a Negotiable Warehouse Receipt (NWR) system for all commodities through a network of registered warehouses,
        • Making the NWR a prime tool of trade and facilitate finance against it
        • Enable banks to enhance lending portfolio quality and interest in lending against goods deposited in registered warehouses.
      • WDRA (Negotiable Warehouse Receipts) Regulations, 2011 lays down the rules for NWRs, including terms for standardization, issuance, surrender, etc. 
      • FCI, NAFED and National Horticulture Board have issued guidelines that Central Pool Stock should be kept in WDRA registered warehouses.
    • Warehouse Receipts
      • Warehouse Receipts are an acknowledgement in writing or in electronic form issued by a Warehouseman or his authorized representative of the receipt for storage of goods not owned by the warehouseman. 
      • e-NWR were launched in 2017 by the WDRA
    • Tags :
    • ‘e-Kisan Upaj Nidhi’
    • Warehousing Development and Regulatory Authority

    GRID CONTROLLER OF INDIA LIMITED (GRID-INDIA)
    • GRID-INDIA was conferred with Miniratna Category-I status for Central Public Sector Enterprises (CPSEs).
    • About GRID-INDIA
      • Established in 2009.
      • Its mandate is to oversee the operation of the Indian Power System.
    • About Miniratna Status
      • Category I: CPSEs with continuous profit in the last three years with pretax profit >30cr in at least one year and have a positive net worth.
      • Category II: CPSEs that have made profit for the last three years and have a positive net worth.
    • Electrical Grid: 
      • It is the intricate system designed to provide electricity all the way from its generation to the customers. 
      • The grid consists of countless complex interconnections, however there are three main sections—electricity generation, transmission and distribution.
    • Tags :
    • GRID-INDIA
    • Miniratna

    INDIATEX LAUNCHED

    • IndiaTex (Innovative Business Practices and Economic Models in the Textile Value Chain in India) is launched at BHARAT TEX 2024, one of the largest-ever global textile events organized in India. 
    • IndiaTex is a four-year (2023-2027) United Nations Environment Programme (UNEP) project.
      • It is a part of the One UNEP Textile Initiative.
        • This initiative provides strategic leadership and encourages sector-wide collaboration to accelerate a just transition towards a sustainable and circular textile value chain.
    • About IndiaTex 
      • Objective: Accelerate the transition of the Indian textile sector towards circularity.
      • Implementation: In collaboration with Ministry of Textiles. 
        • It will be funded by Denmark's Ministry of Foreign Affairs.
      • It is based on 3 key concepts:
        • Eco-innovation: Guides Small and Medium Enterprises (SMEs) in incorporating circularity and resilience into every aspect to reduce the environmental and social impact of human activity.
        • Product Environmental Footprint (PEF): PEF measures the environmental performance of a good or service throughout its life cycle (European Commission).
        • Circularity:  Based on principle Reduce by design, as well as value-retention processes: Reduce, Reuse, Refurbish, Repurpose, Recycle, etc.
    • Benefits for India: Will improve the textiles sector’s competitiveness and market access.
    • Tags :
    • BHARAT TEX 2024
    • One UNEP Textile Initiative

    WEF’S C4IR INAUGURATED AT HYDERABAD
    • World Economic Forum (WEF)’s Centre for Fourth Industrial Revolution (C4IR) inaugurated at Hyderabad.
    • This C4IR will be the world's first thematic centre which will focus on healthcare and life sciences.
    • The inauguration was done during 21st edition of Bio Asia 2024 
      • BioAsia is the edition of the premier life sciences and healthcare forum in Asia. 
    • WEF’s C4IR initiative is aimed at harnessing potential of technological progress for equitable and human-centred transformation of industries, economies and societies. 
    • About 4IR (4th Industrial Revolution)
      • 4IR means the digital transformation of the manufacturing industry by technologies such as Artificial Intelligence, Additive Manufacturing, Internet of Things (IoT), etc. 
      • It also refers to “smart factories”–which are fully connected cyber-physical systems that merges the physical and digital aspects. 
    • Applications 4IR in healthcare and life sciences
    • Monitoring, recording, visualization and sharing of symptoms using wearable devices. 
    • Evidence based care through health profiling and clinical registries.

     

    • Facilitates Precision Medicine and targeted drug delivery. 
    • Challenges:  Fragmented and siloed patient information, lack of skilled personnel, privacy concerns, security issues due to cyber challenges, ethical issues, etc.
    • Earlier, C4IR(INDIA) centre was also established in Maharashtra. It is coordinated by NITI Aayog.
    • Tags :
    • Fourth Industrial Revolution
    • Centre for Fourth Industrial Revolution (C4IR)
    • C4IR

    SABROOM LAND PORT (SLP)
    • PM inaugurated Sabroom Landport in Tripura located along India-Bangladesh international border.
    • About SLP
      • It is connected to Chittagong port of Bangladesh through Maitree Bridge on River Feni.
      • It will facilitate movement of passengers and cargo between India and Bangladesh. 
    • Land Ports
      • These are areas on international border including portions of national highways, State highways, etc., notified as land customs station or immigration check post, with facilities for clearance and transport of passengers and goods across the borders.
      • Currently, there are 11 Land Ports operational in India (excluding SLP).
    • Tags :
    • Land Ports
    • Sabroom Landport

    SUDARSHAN SETU
    • Prime Minister has inaugurated Sudarshan Setu in Gulf of Kutch.
    • About Sudarshan Setu (Signature Bridge)
      • India’s longest cable-stayed bridge with solar panels installed on upper portions of the footpath, generating one megawatt of electricity.
      • Four-lane bridge connects Okha mainland and Beyt Dwarka island in Gujarat.
      • It will ease transportation and reduce time of devotees travelling between Dwarka and Beyt-Dwarka.
      • It features a footpath adorned with verses from Bhagavad Gita and images of Lord Krishna on both sides.
    • Tags :
    • Sudarshan Setu
    • cable-stayed bridge

    SELA TUNNEL
    • Prime Minister inaugurated strategically important Sela tunnel in Arunachal Pradesh.
    • About Sela tunnel
      • Constructed on road connecting Tezpur in Assam to Tawang in Arunachal Pradesh by Border Road Organization’.
      • Constructed using New Austrian Tunnelling Method (NATM).
        • NATM is a support method to stabilize tunnel perimeter with the help of sprayed concrete and other support and uses regular monitoring to control stability of tunnel.
      • World’s longest bi-lane tunnel (~1.5 kms) to provide all-weather connectivity at an altitude above 13,000 ft.
    • Tags :
    • Sela tunnel
    • New Austrian Tunnelling Method
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