RBI Enables UPI Payments from KYC PPIs via Third-Party Apps

The Reserve Bank of India has permitted UPI to facilitate payments from KYC-compliant prepaid payment instruments (PPIs) via third-party UPI apps. The Reserve Bank made the announcement in early April this year.

This allows PPI holders to conduct UPI transactions using the mobile app of a third-party UPI application. In the past, UPI transactions involving a bank account could be carried out through the bank's UPI app or via a third-party app provider.

Nevertheless, UPI transactions with PPIs were restricted to the mobile app offered by the PPI provider.

To offer greater flexibility to PPI holders, the RBI suggested enabling the linking of PPIs via third-party UPI apps. This new rule allows PPI holders to use UPI for transactions in the same way as bank account holders. The Unified Payment Interface is India's leading digital payment platform.

India is witnessing a shift in digital payments as an increasing number of people adopt new online transaction techniques.

The Government of India has prioritized making sure that the advantages of UPI extend beyond India, so other countries can also benefit from it.

Since its inception in 2016, the Unified Payments Interface (UPI) has transformed financial accessibility in India, enabling millions of individuals and businesses to perform digital transactions with ease.