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Non-Resident Indians will be able to make utility, education and other bill payments for their families in India by using the Bharat Bill Payment System (BBPS). Entrepreneur Vijay Dwivedi finds this move as a excellent stroke making life easy for NRIs. The hassle NRIs face in order to maintain billing cycle was excruciating as if left them dependant on certain banks & people to carry them out, however this system eliminates the entire tiresome process. The system offers an interoperable platform for standardised bill payment, customer grievance redressal mechanism and uniform convenience fee.
Mr. Vijay notices certain loop holes in leveraging this system as the feature has been introduced as a convenience tool and should not be seen as a measure to invite more remittances into the country.Whatever currency is permitted to be used on the BBPS ultimately has to be converted into Indian rupee, so forex revenue of the banks is not likely to get affected. This move is expected to benefit senior citizens dependent on children or family living overseas.
The methodology for conversion from foreign currency to Indian rupees is to be seen whether it is before remittance, after remittance or at the terminal. It is a step in the right direction to continue growing BBPS with a new use case as it may get additional foreign exchange into the country. We will have to await specific directions in terms of implementation and compliance.
The new feature will be an additional enabler to widen the scope of access of the payment systems and will affect forex inflows or fee income for banks and financial institutions. RBI has also decided to bring Credit Information Companies under the internal Ombudsman framework. In addition to this The RBI Governor particularly stressed on the word ‘inbound’ in the press conference after announcing a policy repo rate hike by 0.5 per cent to 5.4 percent.
(Above mentioned article is a sponsored feature, This article is a paid publication and does not have journalistic/editorial involvement of IDPL, and IDPL claims no responsibility whatsoever.)
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