May 01, 2025 07:50 pm (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Don't demoralise our forces: Supreme Court rejects plea seeking judicial probe into Pahalgam terror attack | PM Modi inaugurates WAVES, says right time to 'Create In India, Create For The World' | Kolkata fire: Hotel owner and manager arrested after blaze kills 14 | Pahalgam terror attack: US appeals to India and Pakistan to de-escalate border tensions | Pahalgam fallout: Instagram accounts of Mahira Khan, Hania Aamir, other Pakistani actors blocked in India | India shuts airspace for all Pakistani flights days after Pahalgam massacre | Bangladesh Supreme Court stays HC order granting bail to Chinmoy Krishna Das in sedition case | After Pahalgam terror attack, India warns Pakistan over 'unprovoked firing' along LoC: Report | PM Modi to skip Russia's Victory Day parade on May 9 in backdrop of Pahalgam attack | PM Modi holds top cabinet meetings amid India's wait for Pahalgam terror attack revenge
Move aims to enhance convenience for PPI holders like gift cards, metro cards, and digital wallets. (Image credit: Pixabay)

RBI enables UPI transactions for full-KYC PPI users via third-party apps

| @indiablooms | Dec 27, 2024, at 11:23 pm

New Delhi: The Reserve Bank of India (RBI) announced on Friday that users of prepaid payment instruments (PPIs) can now conduct Unified Payments Interface (UPI) transactions through third-party mobile applications, provided their PPIs are full-KYC-compliant.

According to the RBI circular, “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,” reported PTI.

This decision is designed to enhance convenience for PPI holders, such as users of gift cards, metro cards, and digital wallets, allowing them to perform seamless UPI transactions via third-party applications.

These transactions will require pre-approval before processing through the UPI system.

The RBI has further clarified that PPI providers, acting as payment facilitators, must not register customers associated with banks or other PPI issuers.

Previously, UPI transactions involving PPIs were limited to the mobile applications of the respective PPI issuers.

Bank account-linked UPI transactions, however, could already be conducted through either the bank’s UPI app or third-party platforms.

UPI, developed by the National Payments Corporation of India (NPCI), operates as a real-time payment system enabling mobile-based interbank transfers.

What are PPIs?

PPIs function as payment instruments that allow users to purchase goods and services, access financial services, and transfer funds based on the stored value in the instrument.

What are Full-KYC PPIs?

Banks and non-banking entities issue full-KYC PPIs after completing Know Your Customer (KYC) verification.

These instruments can be used for purchasing goods and services, transferring funds, or withdrawing cash, as per RBI guidelines.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.
Related Videos
FM Nirmala Sitharaman presents Budget 2025 Feb 01, 2025, at 03:45 pm
Nirmala Sitharaman on Budget 2024 Jul 23, 2024, at 09:30 pm
PM Modi on Budget 2024 Jul 23, 2024, at 09:30 pm
Close menu