September 30, 2022

Big relief for NRIs, authorization of direct bill payment through BBPS in the country

This move by the Reserve Bank could significantly increase the flow of remittances into the country. At the same time, expansion of India’s bill payment system will also help. Along with this, the time and hassle of the family members of NRIs will also be saved.

Big relief for NRIs

The Reserve Bank has given a big relief to NRIs. On Friday, the central bank said that NRIs can now pay the bills of their families residing in the country using the Bharat Bill Payment System. That means they are able to pay the bills directly themselves. On August 6, the Reserve Bank notified the proposal and now it has received the green signal. This move will not only save time and money for family members living in remote areas of NII but also help in increasing the flow of remittances into the country.

What is the Reserve Bank’s decision?

A circular issued by the Reserve Bank of India (RBI) states that NRIs can use the Bharat Bill Payment System to pay their household electricity, water (utility) and education bills in the country. The RBI said it has decided to allow the transfer of foreign funds received under the Rupee Withdrawal Arrangement (RDA) to the beneficiary’s KYC compliant bank account through the Bharat Bill Payment System (BBPS). In this regard, RBI Governor Shaktikanta Das made an announcement last month. Das said that with this move, NRIs will be able to pay utility, education and other such bills on behalf of their families in India. Until now, NRIs used to transfer money to family members’ accounts to pay bills. Then the family paid more bills. Sometimes, this process proved to be very time-consuming and labor-intensive for those living in remote areas.

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What will be the impact of the decision?

With this move, NRIs will pay themselves, in which case, with the process being easy and transparent, more and more NRIs are likely to start paying bills from their own level. Due to which remittance flow in the country may increase further. Along with this, the expansion of India’s bill payment system could significantly increase with this move, as with the help of NRIs, it would increase the flow of transactions from across the globe. On the other hand, the hard work and running of NRI families living in India will end and timely payment of bills will also be ensured.

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