26 Banks Yet to Activate BBPS: Credit Card Payments via PhonePe, Cred, and Other Apps Unavailable from July 1

Fintech Companies to Halt Credit Card Payments from July 1

Starting from July 1, you will no longer be able to make credit card payments through fintech companies such as PhonePe, Cred, and BillDesk for 26 banks. The reason behind this is that after June 30, all credit card payments will be processed through the Bharat Bill Payment System (BBPS), a centralized billing network. Banks are required to enable BBPS compliance to facilitate this transition.

So far, only 8 out of 34 banks have enabled BBPS compliance. The remaining 26 banks, including major ones like HDFC, ICICI, and Axis, have not yet made this transition. These three banks alone have issued over 50 million credit cards, with HDFC Bank accounting for 20 million, ICICI Bank for 17 million, and Axis Bank for 14 million credit cards.

BBPS Activation Status Among Top 10 Banks for Credit Cards

Out of the top 10 banks by credit card issuance, only 5 have activated BBPS (Bharat Bill Payment System) for their credit card payments.

BankCredit Cards Issued (Million)BBPS Active
HDFC Bank20.8No
SBI Card19.0Yes
ICICI Bank17.0No
Axis Bank14.2No
Kotak Mahindra Bank6.0Yes
Yes Bank4.8No
IndusInd Bank2.9Yes
IDFC First Bank2.6No
Bank of Baroda2.5Yes
Federal Bank0.96Yes

This transition means that starting July 1, users of credit cards from banks that have not yet enabled BBPS will not be able to process their payments through fintech platforms like PhonePe, Cred, and BillDesk.

Payment Industry Requests Extension for BBPS Deadline

Payment Industry Seeks Extension

According to a report by the Economic Times, the payment industry has requested a 90-day extension for the BBPS (Bharat Bill Payment System) deadline. The Payments Council of India has filed a petition with the Reserve Bank of India (RBI) regarding this matter. However, the regulator has not yet made a decision.

NPCI Develops BBPS

Similar to UPI and RuPay, BBPS has been developed by the National Payments Corporation of India (NPCI). Bharat Bill Pay is an interface available on apps like Cred, PhonePe, BillDesk, BHIM, Paytm, and MobiKwik, allowing users to pay all their bills on a single platform.

20% Tax on Overseas Credit Card Spending Above ₹7 Lakhs

Overseas credit card expenses may come under the purview of Tax Collected at Source (TCS). According to media reports, an official involved in the matter stated that with the increasing number of Indians traveling abroad, credit card spending is also on the rise.

In response, the Reserve Bank is working on amendments to the Liberalized Remittance Scheme. If implemented, individuals spending more than ₹7 lakhs on credit cards abroad will be subject to a 20% TCS.

Akash Shrivastav

My name is Akash Shrivastav, and I am a Blogger. I have 8 years of experience in blogging for Finance, Business, Investment, Stock Market, Cryptocurreny and more. Through my writing, I aim to provide readers with insightful and informative content.