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Currently, UPI payments from/ to a bank account can be carried out using the UPI application of that bank or of any third-party application provider.
Now, the interface of any 3rd party app can be used to transfer and receive money in the wallet.
In a major move, the Reserve Bank of India (RBI) on Friday allowed Prepaid Payment Instrument (PPI) users to make and receive UPI payments through third-party UPI applications. The decision, announced in the Statement on Development and Regulatory Policies on April 5, 2024, is set to streamline transactions and bridge the gap between mobile wallets and the UPI ecosystem.
PPIs include Paytm, PhonePe Wallet, Amazon Pay Wallet, etc; while third-party UPI apps are Google Pay, PhonePe, etc.
Currently, UPI payments from/ to a bank account can be carried out using the UPI application of that bank or of any third-party application provider. However, UPI payments from/ to a PPI can only be carried out using the mobile application provided by the PPI issuer.
“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,” it said.
What Does It Mean For Digital Payments?
Now, the interface of any 3rd party app can be used to transfer and receive money in the wallet.
For example, if one needs to transfer or receive money in Paytm or Google Pay wallet, the person does not need to use the interface of those apps. Money can be transferred to/from the wallet even using the app of any other UPI players.
