MUMBAI: Non-resident Indians will soon be able to use Bharat . Bill Payment System The Reserve Bank said on Friday to pay utility bills and education fees on behalf of their family members in India. Bharat Bill Payment System (BBPS) is an interoperable platform for standardized bill payment. More than 20,000 traders are part of the system and more than 8 crore transactions are processed monthly.
RBI Governor Shaktikanta Das said BBPS has transformed the bill payment experience for users in India and is now being proposed to allow the system to accept cross-border bill payments.
“This will enable Non-Resident Indians (NRIs) to make payments on behalf of their families in India on behalf of their families in India for utilities, education and other payments.
He said while announcing the bimonthly monetary policy.
In a statement, the RBI said the decision will also benefit the payment of bills of any bill integrated on the BBPS platform in an interoperable manner.
The central bank will soon issue the necessary guidelines in this regard.
The Governor has also announced a committee to study the possibility of an alternative benchmark for overnight index swaps (MIBORs) based on Mumbai’s overnight exchange rate (MIBOR), which are The most widely used interest rate derivative (IRD) in the domestic market.
The use of MIBOR-based derivatives contracts has increased following the Reserve Bank’s steps to diversify its participant base and facilitate the introduction of new IRD instruments.
At the same time, the MIBOR benchmark rate, which is calculated based on calls made on the NDS call platform during the first hour after the market opens, is based on a narrow trading period, the central bank said.
Internationally, there has been a shift to an alternative benchmark rate with a broader participation base (outside of banks) and higher liquidity.
“Amid these developments, it is proposed that a committee be established to conduct an in-depth examination of the issues, including the need for a transition to an alternative standard, and to recommend the most appropriate way forward. “, it said.
The RBI also decided that Independent Principal Dealers (SPDs), who are also market makers like banks, will also be allowed to execute Overnight Currency Indexing Swaps (FCS-OIS) trades. directly with non-residents and other market makers.
In February this year, banks in India were allowed to conduct transactions in the foreign FCS-OIS market with non-residents and other market makers.
This is allowed to eliminate segmentation between the domestic and foreign OIS markets and improve the efficiency of price discovery.
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