UPI Access for Prepaid Payment Instruments (PPIs) through Third Party App: The Reserve Bank of India (RBI) governor Shaktikanta Das on Friday announced in his monetary policy committee (MPC) statement that individuals can now use prepaid payment instruments like digital wallets to make payments via UPI through third-party apps.
Read More: RBI Retail Direct scheme: Soon, you can buy govt bonds directly via Reserve Bank’s new mobile app
RBI Governor Shaktikanta Das highlighted that wallet holders are no longer restricted to using the issuer’s app for UPI transactions. They can now utilize any third-party UPI app for seamless transactions.
“At present, UPI payments from Prepaid Payment Instruments (PPIs) can be made only by using the web or mobile app provided by the PPI issuer. It is now proposed to permit the use of third-party UPI apps for making UPI payments from PPI wallets,” Shaktikanta Das said. “This will further enhance customer convenience and boost adoption of digital payments for small value transactions,” he added.
ET quoted Vivek Iyer, Partner at Grant Thornton Bharat as saying that enabling UPI access for PPI marks a significant stride towards enhancing interoperability within the payment landscape.
Read More: Know the difference between traditional KYC vs unified KYC
The RBI’s approach appears geared towards expanding UPI’s reach across the ecosystem to promote competition among various products and stimulate additional innovation, he said.
