NPCI Bharat BillPay: Netbanking 2.0 Initiative

The NPCI Bharat BillPay (NBBL) is developing a new payments system termed Netbanking 2.0 to enhance the netbanking experience for customers. This initiative is currently under testing and expected to launch in the next three to four months.

Project Details

• Netbanking 2.0 is a novel system, distinct from existing technologies like IMPS.
• NBBL is a subsidiary of the National Payments Corporation of India (NPCI), responsible for systems like UPI and Bharat Connect.
• The project involves collaboration with various stakeholders, including four major banks and six to eight payment aggregators currently involved in pilot testing.

System Features and Benefits

• The new system aims to standardize and enhance customer experiences for netbanking users.
• It will eliminate the need for payment aggregators to partner with each bank separately, thus addressing interoperability issues.
• Standardization will improve processes such as chargebacks, settlements, and reconciliations.
• Introduction of a dynamic QR code for multi-device flow to facilitate transactions initiated on larger devices and authorized via mobile phones.

Regulatory and Strategic Context

• The Reserve Bank of India (RBI) supports this initiative as part of its Payment Vision 2025, aiming to enhance the efficiency of internet banking settlements.
• The RBI approved the implementation of such a system for NBBL in March last year.

Future Prospects

• NBBL is also testing a new business-to-business payments product with companies like Mswipe Technologies and Zoho.
• This effort aligns with NPCI's role in pioneering payment solutions such as UPI and RuPay.

Overall, Netbanking 2.0 by NBBL is poised to significantly streamline netbanking processes, enhance interoperability, and improve the digital payment landscape in India.