New Delhi: The Reserve Bank of India in its latest update allowed PPI wallet operators to offer UPI payments. PPIs or prepaid payment wallets are offered by third-party payments applications. UPI payments on PPI wallets are expected to expand the reach of online bank-to-bank payments in real time.
What is the change in UPI payments via PPI wallets
Now, users can pay with their PPI wallets through any app instead of the specified PPI wallet app. This interoperability will allow users to use their prepaid wallet without being dependent on the platform that offers the wallet service. While e-wallet companies cannot onboard bank customers onto their platform they can allow for any wallet users to use their platform for wallet-based UPI payments, according to the RBI notification dated December 27, 2024.
Requirements for PPI-UPI service
For PPi wallet-based UPI payments e-wallet users must have their KYC in place. The application being used by the customer will authenticate the user’s UPI transaction from their e-wallet. E-wallet UPI transactions will be pre-approved in nature instead of being approved in real-time in the UPI ecosystem, according to the RBI notification.
E-wallet users can use their existing wallet offered by companies such as Paytm, PhonePe, or Freecharge, among others to any third-party UPI app, according to RBI. So, going forward, UPI users can just make UPI payments from their wallet instead of their bank account.
UPI rule change: Now make UPI payments from your e-wallet using any app. Here’s all you need to know about key wallet-UPI rule change announced by the Reserve Bank of India. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
