Non-Resident Indians will quickly have the ability to use Bharat Invoice Cost System to pay utility payments and training charges on behalf of their members of the family in India, the Reserve Financial institution mentioned on Friday.
The Bharat Invoice Cost System (BBPS) is an interoperable platform for standardised invoice funds. Over 20,000 billers are a part of the system, and greater than eight crore transactions are processed on a month-to-month foundation.
RBI Governor Shaktikanta Das mentioned that BBPS has remodeled the invoice fee expertise for customers in India and it’s now proposed to allow the system to just accept cross-border inward invoice funds.
“This may allow Non-Resident Indians (NRIs) to undertake invoice funds for utility, training and different such funds on behalf of their households in India.
“This may drastically profit the senior residents specifically,” he mentioned whereas asserting the bi-monthly financial coverage.
In an announcement, the RBI mentioned the choice can even profit fee of payments of any biller onboarded on the BBPS platform in an interoperable method.
The central financial institution shall be shortly issuing essential directions on this regard.
The Governor additionally introduced a committee to review the potential for an alternate benchmark to Mumbai Interbank Outright Price (MIBOR) based mostly in a single day listed swap (OIS) contracts, that are essentially the most extensively used rate of interest derivatives (IRDs) within the onshore market.
The utilization of MIBOR-based by-product contracts has elevated with steps taken by the Reserve Financial institution to diversify the participant base and facilitate the introduction of latest IRD devices.
On the identical time, the MIBOR benchmark fee, calculated based mostly on name cash offers executed on the NDS-call platform within the first hour after market opening, relies on a slender window of transactions, the central financial institution mentioned.
Internationally, there was a shift to alternate benchmark charges with wider participant bases (past banks) and better liquidity.
“Amidst these developments, it’s proposed to arrange a committee to undertake an in-depth examination of the problems, together with the necessity for transition to an alternate benchmark, and recommend essentially the most applicable approach ahead,” it mentioned.
The RBI additionally determined that Standalone Main Sellers (SPDs), who’re additionally market-makers like banks, can even be permitted to undertake International Foreign money Settled In a single day Listed Swap (FCS-OIS) transactions instantly with non-residents and different market-makers.
In February this 12 months, banks in India have been permitted to undertake transactions within the offshore FCS-OIS market with non-residents and different market-makers.
This was permitted with a view to eradicating the segmentation between onshore and offshore OIS markets and bettering the effectivity of value discovery.
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