UPI: You transact cash through Google Pay, Phone Pay or Amazon Pay. Also pay for any good or service. But that is potential solely when these digital payment wallets are linked to a bank account. But now the scenario will change. Now you shall be ready to transact or pay cash even through such digital payment wallets, which aren’t linked to any bank account. The Reserve Bank has now authorised payment or switch of cash through such third get together apps additionally. These shall be third get together apps i.e. pay as you go devices. That is, a digital wallet through which cash has to be deposited first through a bank account, UPI or money. Then you shall be ready to pay the identical quantity. Without depositing cash individually, these wallets won’t be able to use your bank account to switch cash. The Reserve Bank has given inexperienced sign to UPI transactions through PPI. For this, these having PPI can have to compulsorily get KYC performed. After this inexperienced sign from the Reserve Bank, banks or non-banks shall be ready to situation their PPI wallet.
Understand it simply with these examples
You use present playing cards, metro rail playing cards and so on. These are all PPI wallets. The cash deposited on this through money or switch from bank account can solely be used for payment. But after the brand new order of the Reserve Bank or after getting their KYC performed, cash can even be transferred through these apps on Google Pay, Phone Pay and so on.
Steps taken to ease digital payments
The function of this inexperienced sign from the Reserve Bank is to ease the method of digital payment. With this, payment through UPI can be accepted on the PPI wallet and cash can even be despatched on the UPI platform.
Also learn: Forex: The decline in foreign exchange reserves continues, decreased by $ 8.48 billion to $ 644.39 billion.
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