RBI allows utility bills, tax payments under inward remittance
The Reserve Bank of India (RBI) has allowed payments to utility service providers, tax payments, and EMI payments in India with a view to expand the scope of cross-border inward remittances.
Cross-border inward remittance is a Rupee Drawing Arrangement (RDA) were remittances are received in India through exchange houses situated in the Gulf countries, Hong Kong, Singapore and Malaysia (for Malaysia only under Speed Remittance Procedure).
The apex bank said that payments to utility service providers in India, for services such as water supply, electricity supply, telephone (except for mobile top-ups), internet, television, tax payments and EMI payments in to banks and non-banking financial companies (NBFCs) for repayment of loans, would be allowed under RDA.
Under the existing arrangement, credit to non-resident (external) rupee accounts maintained by NRI in Indian rupees, payments to families of NRIs, payments in favour of Insurance companies, mutual funds and the post master for premia/investments, and payments in favour of bankers for investments in shares, debentures are allowed under RDA.
Among others, payment to cooperative housing societies, government Housing Schemes or estate developers for acquisition of residential flats in India in individual names by the NRIs, payments of tuition/boarding, examination fee to schools, colleges and other educational institutions under RDA.
RDA also includes payments to medical institutions and hospitals for medical treatment of NRIs/their dependents and nationals of Gulf countries in India, payments to hotels by nationals of Gulf countries/NRIs for their stay are allowed under the arrangement.
Payments to travel agents for booking of passages of NRIs and their families residing in India towards their travel in India by domestic airlines/rail and trade transactions up to Rs 2 lakh per transaction are also a part of the existing RDA.
