Mumbai (Maharashtra) [India], December 27 : The Reserve Bank of India has allowed UPI to enable payments from KYC Prepaid Payment Instruments (PPIs) through third-party UPI applications.
It was initially announced by the Reserve Bank in early April this year.
This will enable PPI holders to make or receive UPI payments through the mobile application of third-party UPI applications.
Earlier, UPI payments from or to a bank account could be carried out using the UPI application of that bank or of any third-party application provider. However, UPI payments from or to a PPI could only be carried out using the mobile application provided by the PPI issuer.
To provide more flexibility to PPI holders, RBI had proposed to permit the linking of PPIs through third-party UPI applications. This new provision has enabled the PPI holders to make UPI payments like bank account holders.
Unified Payment Interface is India's leading digital payment platform. Payments through digital means in India are hitting fresh highs, as its citizens are increasingly adopting the emerging modes of transacting on the internet.
Among others, a key emphasis of the Indian government has been on ensuring that the benefits of UPI are not limited to India only; other countries, too, benefit from it.
Since its launch in 2016, the Unified Payments Interface (UPI) has transformed financial access in India, enabling millions of individuals and merchants to perform seamless digital transactions.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor