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:
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AU Small Finance Bank
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Bank of Baroda (BOB)
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Canara Bank
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Federal Bank
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IDBI Bank
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IndusInd Bank
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Kotak Mahindra Bank
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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:
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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.
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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
This situation is expected to be temporary. It is anticipated that within a few months, all banks will have activated the BBPS, allowing for a smoother transition and the resumption of third-party app payments for all credit cards.
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.
