This status "PCC needs to be collected from the Regional Passport Office" means applicant's application is successfully processed at respective RPO jurisdiction, and they have completed their formalities from their side to issue PCC to applicant. Since it is an outside application, and hence this status meant for embassy folks to go ahead and print the pcc letter and send it to bls. With this new guidelines, embassy here is simply acting as a postman to send your docs to psk thru online, and wait for them to process. Once they complete and provide green signal status which is "PCC needs to be collected from the Regional Passport Office" its upto embassy folks when they go and generate pcc letter physically and send it to another postman i.e. bls in this entire cumbersome process.
If you have urgency then you can send email with evidence consulate may expedite your case ..again completely upto them. This was told to me by bls customer care. I applied on may 20 and expecting my pcc in next 2 weeks.