RBI proposes for Cross-border inward payments through BBPS
Recently, the Reserve Bank of India proposed to allow Bharat Bill Payment System (BBPS) to process cross-border inbound bill payments. This will help the Non-resident Indians (NRIs) who face challenges in paying utility bills in India. If proposal is accepted, it will benefit the NRIs.
Other significance of the move include;
- Cross-border inward payments through BBPS will drive the Indian economy.
- It will provide a broader market approach for BBPS and boost forex inflow to India.
- It will further promote adoption of BBPS by global bill payment ecosystems.
About Bharat Bill Payment System (BBPS):
BBPS system was conceptualised by the central bank. It is owned and operated by National Payments Corporation of India (NPCI) Bharat BillPay Ltd (NBBL). The system offers interoperable and accessible bill payment services digitally, along with a network of bank branches and agents. BBPS allows to make recurring payments, like electricity bill, DTH bill, gas bill, water bills, Insurance, Education fees, Loan repayments etc. Payment mode options available at BBPS include Cash, Cards UPI, IMPS, AEPS, Internet Banking and Wallets. Currently, this system is available for residents in India only.
National Payments Corporation of India (NPCI):
NPCI is the specialised division of RBI, under the parent head of Ministry of Finance. It was established in 2008, to operate the retail payments and settlement systems in India.
Category: Economy & Banking Current Affairs - 2024