The Reserve Bank of India (RBI) has allowed NRIs to pay bills on behalf of their families in India through Bharat Bill Pay System (BBPS). This facility will start soon.
Experts say this is a significant development showing RBI’s commitment to standardizing and further optimizing the digital payments ecosystem in India.
“The announcement by RBI to allow NRIs to pay bills for their family members in India directly on BBPS, depicts a further liberalisation measure on cross-border payment transactions front,” said Sudhir Sharma, Senior Partner, DSK Legal.
Instead of transmitting money to Indian accounts and using it to pay such bills, NRIs will soon be able to directly pay such bills on BBPS.
“This will enhance ease and reduce delayed payments, thereby benefitting the economic ecosystem as a whole,” said Sharma.
BBPS is a one-stop financial framework for payment of bills that is interoperable and accessible at any point in time and from anywhere. It has been authorized by the RBI and is the brainchild of the National Payments Corporation of India (NPCI) which has been at the forefront of piloting this novel project.
With the latest RBI decision, NRIs will be able to make direct payments of various utilities such as water bills, electricity bills or telecom for their respective families in India via the BBPS platform.
“The BBPS platform will be the facilitator for the payments between the individuals utilizing the service, the service providers and the ones making the payment. Thus, BBPS will be a bridge between the non-resident Indians, their families in India and the service providers, ensuring all stakeholders benefit from the same,” said Suvigya Awasthy, Associate Partner, PSL Advocates & Solicitors.
BBPS has enabled various payment options such as payment via cards (credit or debit), NEFT, UPI or wallets.
“Such diverse payment options will ensure convenience for the non-resident Indians making the payments to the service providers and utilizing various modes of payments as per their financial suitability,” said Awasthy.
To provide a holistic framework, a consumer complaints option has also been provided to provide concurrent support to consumers regarding any grievances apropos BBPS.