After imposing the Billing and Settlement Plan (BSP) on weekly payment system in countries like Saudi Arabia and Kuwait, IATA has announced to introduce the same in India effective June 1, 2012.

Currently working on fortnightly payment systems, the new weekly payment system is expected to impact the travel agency business in India as most of them provide a credit limit of close to 30 days to corporate clients and travellers.

Associations like TAAI, TAFI, IAAI and IATO have taken up the issue with IATA, MoCA, DGCA and other airlines to withdraw the decision. Agencies that default on payments are allowed a grace period to be reinstated, but during the default period the agency losses the authorisation to sell tickets through the IATA BSP.