NRIs will soon be able to pay utility bills using Bharat bill payment system

Non-resident Indians will soon be able to use the Bharat bill payment system to pay utility bills and education costs on behalf of their family members in India, the Reserve Bank announced on Friday.

The Bharat Bill Payment System (BBPS) is an interoperable platform for standardized bill payments. Over 20,000 billers are part of the system and over 8 million transactions are processed on a monthly basis.

RBI Governor Shaktikanta Das said BBPS has transformed the bill payment experience for users in India and it is now proposed to enable the system to accept inbound cross-border bill payments.

“This will enable Non-Resident Indians (NRIs) to undertake bill payments for utilities, education and other similar payments on behalf of their families in India.

“This will greatly benefit the elderly in particular,” he said when announcing the biweekly monetary policy.

In a statement, the RBI said the decision will also benefit the bill payment of any bill issuer integrated on the BBPS platform in an interoperable manner.

The central bank will soon issue the necessary instructions in this regard.

The Governor also announced the establishment of a committee to study the possibility of an alternative reference to Overnight Index Swap (OIS) contracts based on the Mumbai Interbank Outright Rate (MIBOR), which are the derivatives of most widely used interest rates (IRD) in the onshore market.

The use of MIBOR-based derivative contracts has increased with the steps taken by the Reserve Bank to diversify the participant base and facilitate the introduction of new IRD instruments.

At the same time, the MIBOR reference rate, calculated on the basis of overnight silver transactions executed on the NDS call platform in the first hour after the market opens, is based on a narrow window of transactions, the central bank said.

Internationally, there has been a shift to alternative benchmark rates with broader participant bases (beyond banks) and higher liquidity.

“Amidst these developments, it is proposed to set up a committee to undertake a thorough review of the issues, including the need for a transition to an alternative benchmark, and to suggest the most appropriate route,” it said. he declares.

The RBI has also decided that Autonomous Primary Dealers (SPDs), which are also market makers like banks, will also be allowed to undertake Foreign Currency Settled Overnight Index Swap (FCS-OIS) transactions directly with non-residents and other market makers.

In February this year, Indian banks were allowed to transact in the offshore FCS-OIS market with non-residents and other market makers.

This was authorized with a view to removing segmentation between the onshore and offshore OIS markets and improving the efficiency of price discovery.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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