- The direction was issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act (FEMA), 1999.
- From now on, foreign inward remittances received under the Rupee Drawing Arrangement (RDA), will need to be transferred to the KYC-compliant bank account of the beneficiary through Bharat Bill Payment System (BBPS).
- Before this approval by the RBI, foreign inward remittances received under RDA could be transferred to the KYC-compliant beneficiary’s bank account through electronic mode, viz., National Electronic Fund Transfer (NEFT), Immediate Payment Services (IMPS).
- RDA is a channel to receive cross-border remittances from foreign jurisdictions. Under this, the Authorized Category I banks enter into tie-ups with the non-resident Exchange Houses in the FATF-compliant nations to open and maintain their Vostro Account.
- Vostro is a Latin word meaning “yours”. A Vostro Account is an account that a correspondent bank holds on another bank’s behalf. This account acts as a way for domestic banks to access the financial services of a foreign bank.
Question:
Q.1 Recently the RBI allowed ______ to process the cross-border inbound remittances.a. Bharat Bill Payment System
b. PayPal
c. BillDesk
d. RazorPay
