RBI allows interoperability between PPIs like wallets for UPI payments

The Reserve Bank of India (RBI) on Friday allowed interoperability of prepaid payment instruments (PPIs) for Unified Payments Interface (UPI) transactions through third party application providers (TPAPs).

Currently, UPI payments are interoperable such that a user can use any TPAP to transfer funds. However, transactions between PPIs, such as digital wallets, can only be conducted within the payments system provided by the wallet issuer.