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RBI allows RDA remittances via BBPS for cross-border bill payments

Current · Source: Reserve Bank of India · RBI/2022-23/115 · issued 15 Sep 2022 · ~2 min read
Quick answerRBI now permits foreign inward remittances under Rupee Drawing Arrangement to be routed through Bharat Bill Payment System to KYC-compliant biller accounts, expanding payment options beyond NEFT/IMPS.
The rule, in the simplest words
How it plays out — a real example

Rajesh, a KYC & compliance officer in Indore, gets a call from an NRI customer who wants to pay his mother's electricity bill in India. Rajesh explains that now, instead of using NEFT, the bank can send the money directly through BBPS to the electricity company's account, making the payment faster and simpler for the customer.

What changed

Previously, RDA remittances could only be transferred to beneficiary accounts via electronic modes like NEFT or IMPS. Now, AD Category-I banks can also use BBPS for these transfers, subject to the same conditions as the 2014 circular. This change was announced in the Statement on Developmental and Regulatory Policies issued on August 05, 2022.

What it means for you

Banks can offer NRIs and remitters a more integrated bill payment experience through BBPS, potentially increasing remittance volumes. It simplifies the last-mile crediting for utility and other bill payments, reducing operational friction. Lenders must ensure BBPS integration complies with existing KYC and RDA guidelines.

What you must do

Who it affects

AD Category-I banks handling Rupee Drawing Arrangements, NRI customers using RDA for remittances, Biller service providers on BBPS, Remittance aggregators and payment system operators

❓ Common questions

Can all types of bill payments be made through BBPS using RDA remittances?

The circular allows transfer to KYC-compliant bank accounts of billers via BBPS, subject to conditions in the 2014 circular. It does not specify bill types, so it likely covers all BBPS-enabled categories.

Do we need separate RBI approval to enable BBPS for RDA?

No separate approval is needed beyond compliance with this circular and the 2014 circular. AD banks must ensure adherence to FEMA provisions and existing guidelines.

What are the key conditions from the 2014 circular that still apply?

The 2014 circular requires KYC compliance of beneficiary accounts and electronic transfer via modes such as NEFT/IMPS. The same conditions now extend to BBPS transfers.

📜 Read the original circular — full text as issued by RBI
RBI/2022-23/115 A.P. (DIR Series) Circular No. 14 September 15, 2022 To All Category-I Authorised Dealer Banks Madam/Sir, Rupee Drawing Arrangement - Enabling Bharat Bill Payment System (BBPS) to process cross-border inbound Bill Payments Please refer to A.P. (DIR Series) Circular No. 120 dated April 10, 2014 on ‘Rupee Drawing Arrangement – Direct to Account Facility’, in terms of which, foreign inward remittances received under Rupee Drawing Arrangement (RDA) can be transferred to the KYC compliant beneficiary bank accounts through electronic mode, such as, NEFT, IMPS, etc. subject to the procedure and conditions mentioned therein. 2. As announced in Para 6 of the Statement on Developmental and Regulatory Policies issued on August 05, 2022 , it has been decided to allow foreign inward remittances received under the Rupee Drawing Arrangement (RDA), to be transferred to the KYC compliant bank account of the biller (beneficiary) through Bharat Bill Payment System (BBPS), subject to the conditions mentioned in Para 3 of A.P. (DIR Series) Circular No.120 dated April 10, 2014 . 3. AD Cat-I Banks may bring the contents of this circular to the notice of their constituents concerned. 4. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law. Yours faithfully, (Vivek Srivastava) Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2022-23/115 · issued 15 Sep 2022. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
💻 IT / Systems
  • Update internal RDA processing systems to support BBPS as a payout channel.
📜 Compliance
  • Ensure KYC compliance for biller accounts receiving RDA funds via BBPS.
  • Communicate the new facility to NRI customers and remittance partners.
  • Review and align with conditions in A.P. (DIR Series) Circular No. 120 dated April 10, 2014.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are an IT/Systems lead at a bank this circular applies to (AD Category-I banks handling Rupee Drawing Arrangements, NRI customers using RDA for remittances, Biller service providers on BBPS, Remittance aggregators and payment system operators), your first concrete step on “RBI allows RDA remittances via BBPS for cross-border bill payments” is: “Update internal RDA processing systems to support BBPS as a payout channel.” (RBI issued this 15 Sep 2022).

  1. Circular: RBI/2022-23/115 -- RBI allows RDA remittances via BBPS for cross-border bill payments
  2. Issued: 15 Sep 2022
  3. Action required: Update internal RDA processing systems to support BBPS as a payout channel.
  4. Action required: Ensure KYC compliance for biller accounts receiving RDA funds via BBPS.
  5. Action required: Communicate the new facility to NRI customers and remittance partners.
  6. Action required: Review and align with conditions in A.P. (DIR Series) Circular No. 120 dated April 10, 2014.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12386&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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