Credit Card Update: If you use apps like CRED, or PhonePe to pay your credit card bill, you may get a shock from July 1..

If you are a credit card user, then you may get a shock. From July 1, there may be difficulty in paying credit card bills through some platforms. CRED, PhonePe, and BillDesk are some of the major fintechs that may be affected by the new rules of RBI. The central bank has directed that after June 30, all credit card payments should be processed through the Bharat Bill Payment System i.e. BBPS.

According to the report of Economic Times, HDFC Bank, which has issued 2 crore credit cards so far, ICICI Bank, which has issued 1.7 crore credit cards, and Axis Bank, which has issued 1.4 crore credit cards, have not activated BBPS. These banks have not yet followed the instructions. Fintechs like CRED and PhonePe, which are already members of BBPS, will also not be able to process payments on credit card dues for them after June 30.

Only 8 banks' credit cards are live on BBPS
The payment industry has demanded to extend the deadline by 90 days. So far only 8 banks have activated bill payment on BBPS, while a total of 34 banks are allowed to issue credit cards.

What is BBPS
Bharat Bill Payment System is an integrated system of bill payment, which provides online bill payment service to customers. It is an interoperable platform for bill payment. This system works under the National Payments Corporation of India i.e. NPCI.

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