RBI approves PPI holders to make UPI payments via third-party apps
The Reserve Bank of India (RBI) today approved prepaid payment instruments (PPI) users to make and receive UPI payments through third-party mobile applications.
“It has been decided to enable UPI payments from/to full-KYC PPIs through third-party UPI applications. This will enable PPI holders to make/receive UPI payments through the mobile application of third-party UPI applications,” the RBI said.
Says Sharat Chandra, Founder, EmpowerEdge Ventures, “The RBI’s recent directive seeks to enhance payment interoperability in alignment with its Payments Vision 2025. With this move, PPI holders can now seamlessly make and receive UPI payments using popular third-party apps like Google Pay and PhonePe, breaking free from the limitations of PPI issuer-specific platforms such as Paytm or Amazon Pay.”
According to Ankush Julka, COO at Mufinpay, one of the main challenges with PPIs has been their limited compatibility with mainstream banking services and payment platforms. By integrating PPIs with UPI, he says the RBI has addressed this issue, making it easier for users to link their digital wallets to UPI-enabled apps.
“This change will improve user experiences and provide more convenience for our customers. It will make transactions smoother, whether it’s paying bills, shopping online, or transferring funds, which is crucial for encouraging wider adoption of digital payments,” he said.