Overview

What is Bharat Connect ?

Bharat Connect, proposed by NPCI, is set to revolutionize B2B transactions by providing a unified platform for handling various business processes. This platform is designed to streamline and democratize B2B invoicing, billing, and financing, making these essential functions more accessible and efficient for businesses of all sizes.

The core offerings of Bharat Connect include:

• Invoicing: Facilitating the creation and distribution of invoices in a standardized format.
• Payments: Enabling easy payment of invoices directly through the platform.
• Reconciliation and Settlement: Automating the matching of invoices and payments, ensuring accuracy in financial records.
• Financing: Providing options for businesses to access financing based on their billing and invoicing activities, helping manage cash flow more effectively.
• Democratizing Accounting Functionality: Standardizing accounting functions across all ERPs, ensuring that businesses, regardless of size or ERP system, have access to high-quality accounting tools.

Overall, Bharat Connect acts as a central intermediary that connects various accounting tools, allowing them to interact safely and efficiently. This integration helps businesses manage their billing, financing, and accounting operations more effectively, promoting a smoother operational workflow.

Who are the different participants in Bharat Connect ecosystem ?

The Bharat Connect ecosystem, initiated by NPCI, brings together various participants to create a robust and interoperable platform for B2B transactions. Here’s an overview of the different participants involved:

Participants in the Bharat Connect Ecosystem

1. NPCI (National Payments Corporation of India):

• Oversees and manages the Bharat Connect platform, ensuring it aligns with the regulatory requirements and security standards.

2. Central Operating Unit (COU):

• The COU is responsible for the overall management and governance of the Bharat Connect system. It sets operational standards, manages clearances, and ensures seamless transaction processing across the platform.

3. Operating Units (OUs):

• These are banks or financial institutions authorized by NPCI to operate within the BBPS ecosystem. OUs handle the processing of transactions, settlements, and the management of day-to-day operations related to bill payments.

4. Agent Institutions (AIs):

• Typically ERP systems, business software providers, or financial service apps that interface directly with end-users. They are onboarded by OUs and are essential for expanding the reach of Bharat Connect services to a broader customer base.

5. End-Users (Businesses and Customers):

• The recipients of services provided through Bharat Connect, utilizing the platform for invoicing, payments, and accessing financial services like credit.

The figure below shows the different participants of the Bharath Connect Ecosystem.