RBI said the relevant provisions have been amended. File
| Photo Credit: Reuters
The Reserve Bank of India (RBI) has decided to enable UPI payments from/to full-KYC Prepaid Payment Instruments (PPIs) through third-party UPI applications as per it’s previous announcement made in the Statement on Development and Regulatory Policies dated April 5, 2024.
“This will enable PPI holders to make/receive UPI payments through the mobile application of third-party UPI applications. The relevant provisions have been amended,” the RBI said in a statement.
Editorial | Staying the course: On the RBI and inflation
As per the amended provision, “A PPI issuer shall enable holders of only its full-KYC PPIs to make UPI payments by linking its customer PPIs to its UPI handle. UPI transactions from PPI on the issuer’s application shall be authenticated using the customer’s existing PPI credentials,” the RBI said.
“Such a transaction will, thus, be pre-approved before it reaches the UPI system. A PPI issuer, in its capacity as a PSP, shall not on-board customers of any bank or any other PPI issuer,” it said. “A PPI issuer may also facilitate discovery of its full-KYC PPIs on third-party UPI mobile applications, who, in turn shall enable such PPIs to be linked to their PSP handle/s. Such UPI transactions, from PPIs using third party UPI applications, shall be authenticated using the UPI credentials,” it added.
As of now UPI payments from/to a bank account were carried out using the UPI application of that bank or of any third-party application provider. However, UPI payments from/to a PPI were only be carried out using the mobile application provided by the PPI issuer.
Published – December 27, 2024 04:40 pm IST