NRI’s access to bill payments could increase dollar inflows
Mumbai: The Reserve Bank of India has taken action to help non-resident Indians pay utility and other utility bills due at home in India. The central bank also allowed primary dealers to participate in foreign exchange derivatives markets and to offer foreign exchange market making facilities.
The two independent measures aimed at ensuring operational flexibility could also support efforts to stabilize the foreign exchange market.
The RBI said this would enable the Bharat Bill Payment System (BBPS) to accept incoming cross-border payments. BBPS is a common platform that all billers and bill paying units like banks and payment companies connect to.
“This is a convenience measure for non-resident Indians and their relatives staying here. The idea is that they will be able to pay any bill in India. .. insurance, electricity or any other utility through an interface that will be provided by banks and exchange houses,” said T Rabi Sankar, Deputy Governor, RBI.
According to Anil Gupta, vice president and co-head of the financial sector ratings group, if there is a government foreign borrowing program, access to these markets will enable primary traders to hedge their interest and exchange rates resulting from the markets. realization of its loans on the foreign market.
Regarding the authorization of primary dealers in forex derivatives, Gupta said: “The inclusion of primary dealers as market makers in foreign exchange markets and overseas interest rate markets could further improve the breadth and depth of these markets and add to the commission income of these SPDs.While most primary traders have expertise in the bond and interest rate derivatives markets, exploiting new trading opportunities will require increased labor skills in foreign exchange markets”.