NRIs living in India can now pay utility bills through Bharat Bill Payment System.
News by NRI Herald, 16th August 2022
The payouts framework processes over 80 million transaction records per month. The RBI would issue the necessary standards on this subject in the near future.
Non-resident Indians (NRIs) will soon be able to pay their families' electric power bills in India, thanks to the Reserve Bank of India's (RBI) proposal on Friday to allow the Bharat Bill Payment System (BBPS) to accept cross-border internal transactions.
BBPS is owned and operated by the National Payments Corporation of India (NPCI), which provides an integrated foundation for systematic and standardized billing experiences. The current system serves over 20,000 billers and is only available to Indian residents.
On a monthly basis, the payments system handles over 80 million financial transactions.
The RBI's action is supported by the concept of allowing NRIs who have not had direct exposure to a full package of bill hoarders or who do not have an NRE record to create power bills on behalf of their families.
"This is primarily a straightforward method of measuring NRIs and their own family members who live here." "The idea is that they will be able to pay any bill—health insurance, electricity, and other rent and utilities—via the framework and functionality provided by exchange houses or banks," said T. Rabi Sankar, deputy chairman of the Reserve Bank of India.
In addition, this will receive support payment transactions for any invoices on the BBPS system in an inter-operable manner. The RBI may issue the necessary regulations on this subject very soon.
Through a simple interface, BBPS provides a wide range of bill gathering classifications, including energy, a communications company, DTH, LPG, and maintenance fees, as well as other recurring payouts such as insurance rates, collective investment schemes, education expenses, organization fees, bank cards, fast top up, taxation, and residential society fees. The environment supports cards (credit, debit, and prepaid), NEFT Internet Banking, UPI, wallets, Multi-Factor authentication payments, and cash as payment methods.
Actually, the goal is not to increase internal money transfers. According to the RBI governor, it is provided to simplify payment for several homes, particularly elderly people who find it difficult to make transactions and whose children live abroad.
It's a positive step in the right direction to keep increasing BBPS with a new utilization case because it may bring in more foreign currency," Pranay Jhaveri, managing director (India & South Asia).
In our opinion, this will be an additional accomplice to broaden the reach and ease of use of payment solutions, rather than a tangible booster or blocker for currency exchange capital flows or fee income overall for many buyers and sellers.