NRIs will now be able to pay for services directly in India

The Reserve Bank of India (RBI) on Friday proposed to allow non-resident Indians (NRIs) to make utility, education and other bill payments on behalf of their family members residing in India.

The payment will be processed through the cross-border inward bill payment facility of Bharat Bill Payment System (BBPS).

Experts said the move would be convenient for NRIs who make regular payments in India.

The move was announced by RBI Governor Shaktikanta Das in his monetary policy statement. The central bank will soon issue instructions to implement it.

According to Ashish Ahuja, Chief Operating Officer, Fino Payments Bank, BBPS is currently available only by resident Indians, and NRIs usually transfer money to a relative’s account in India, who can then make the payment.

“My understanding is that RBI is allowing direct payments from an NRI’s bank account, wherein BBPS will start accepting cross-border inward payments. Simultaneously, all billers included in BBPS will be paid in an interoperable manner.

BBPS is a payment system envisioned by the Reserve Bank of India and operated by National Payments Corporation of India to help customers make bill payments digitally and physically through bank branches and business correspondents.

For example, you can pay your mobile phone bill by visiting a service provider’s website. In this case, the payment is made directly to the service provider. Here, BBPS does not come into play. But, if you want to make bill payment through online or mobile banking, your payment can be done through BBPS.

Ahuja said that BBPS can be used not only for utility bill payments, but also for other categories including education fee, municipal tax and insurance-related payments. “While RBI will give the details, I think it is likely to help NRIs ease bill payments in India,” he added.

Asked whether RBI will levy transaction fee for the services, Thomas Joseph Kay, Executive Vice President and Group Business Head, South Indian Bank said, “For resident Indians, BBPS does not charge any fee. For NRIs, it is family There will be an opportunity to relieve the Utility Payments members from the hassle of utility payments. On the implementation side, we will have to wait for details from RBI.”

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