Major Changes in Credit Card Bill Payments Effective 1st July, 2024: What You Need to Know
Are you using the CRED App, PhonePe, Amazon Pay, PayTM, or other third-party apps to pay your credit card bills? Starting from July 1st, significant changes are coming that may affect how you pay your credit card bills. This article will guide you through these changes, why they are happening, and how they might impact you.
Key Changes in Credit Card Bill Payments
Beginning July 1st, credit cards issued by HDFC, ICICI, Axis, Yes Bank, IDFC, and many other banks will no longer support credit card bill payments through third-party apps like CRED, PhonePe, Amazon Pay, and PayTM. However, credit cards from certain banks will still support these payments. The banks that will continue to accept credit card bill payments through third-party apps are:
AU Small Finance Bank
Bank of Baroda (BOB)
Canara Bank
Federal Bank
IDBI Bank
IndusInd Bank
Kotak Mahindra Bank
SBI Cards (State Bank of India)
Why Is This Happening?
Out of the 34 banks authorized to issue credit cards in India, only 8 banks have integrated with the BBPS to accept credit card bill payments. While platforms like CRED and PhonePe are members of the BBPS, many major credit card issuers such as HDFC Bank, ICICI Bank, and Axis Bank have not yet activated this system to receive payments.
How Will This Affect You?
As a credit card user, you will need to adjust how you pay your bills if your credit card issuer has not yet adopted the BBPS system. Here are your options:
Use the Card Issuer’s Website or App: You can make payments directly through your credit card issuer’s website or mobile app using net banking or auto-mandate services.
Payment Reminders: If you’ve given apps like CRED access to your email, you will still receive payment reminders, which can help you avoid missing deadlines.
Temporary Disruption
Industry Response and Possible Extensions
Recognizing the potential for disruption, the industry body has requested the RBI to extend the deadline by 90 days. This extension would provide banks more time to integrate with the BBPS and ensure a seamless transition for all credit card users.
Conclusion
While this change may cause some inconvenience in the short term, it is part of a broader effort to enhance the security and efficiency of credit card bill payments in India. Stay informed and check with your credit card issuer for the latest updates on their integration with the BBPS.
For now, ensure you are aware of the available payment methods and make necessary arrangements to avoid any payment delays. As always, timely payment of your credit card bills is crucial to maintaining a healthy credit score and avoiding unnecessary charges.
Stay tuned for further updates as more banks complete their integration with the BBPS and the payment ecosystem continues to evolve.
FAQs
Accordion Content
No, from July 1st, 2024, major banks like HDFC, ICICI, Axis, IDFC, and Yes Bank will stop accepting bill payments through third-party apps such as CRED, PhonePe, Amazon Pay, and PayTM. You will need to pay directly via the bank’s app, net banking, or website.
As of July 2024, AU Small Finance Bank, Bank of Baroda, Canara Bank, Federal Bank, IDBI Bank, IndusInd Bank, Kotak Mahindra Bank, and SBI Cards will continue to accept bill payments through third-party apps.
The change is due to RBI’s requirement that credit card payments must route through the Bharat Bill Payment System (BBPS). While some banks have integrated with BBPS, others like HDFC, ICICI, and Axis have not yet enabled it, leading to the temporary disruption.
You can pay directly through your credit card issuer’s app, internet banking, UPI to the official handle, or by setting up auto-debit/standing instructions with your bank account.
Yes, apps like CRED and PhonePe will still send you bill due reminders (if you’ve given them access), but the payment option may redirect you to the bank’s own platform instead of direct app payment.
No, this is expected to be temporary. Within a few months, most banks are likely to complete BBPS integration, after which third-party apps should again support payments for all credit cards.
Industry bodies have requested RBI for a 90-day extension, but until it’s confirmed, users should assume that the July 1st, 2024 changes are effective and adjust payment methods accordingly.
CRED is a popular app where you can pay credit card bills and earn rewards or cashback in return. Even after July 2024 changes, CRED will continue to send reminders for due bills, but actual payments for some banks may need to be completed on the bank’s own app or website.
