RBI allows UPI access for prepaid payment instruments via third party applications: Here’s what it means

The Reserve Bank of India (RBI) on Friday, December 27, allowed prepaid payment instrument holders to make and receive unified payments interface (UPI) payments through third-party mobile applications. The central bank said in a circular today that it has decided to enable UPI payments from/to full-KYC prepaid payment instruments (PPIs) through third-party UPI apps.

“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,” said the RBI in its circular today.