NEW DELHI: Reserve Bank of India (RBI) on Friday mentioned that customers of pay as you go cost devices (PPIs) can now make and obtain Unified Payments Interface (UPI) transactions from and to full-KYC-compliant PPIs via third-party cellular functionsincreasing the scope of digital cost providersas acknowledged of their round.
“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,” it mentioned, information company PTI reported.
The RBI choice goals to reinforce flexibility for PPI holders, together with customers of reward playing cards, metro playing cards, and digital wallets, by enabling seamless UPI transactions via third-party apps.
These transactions will likely be pre-authorized earlier than being processed via the UPI system. RBI has specified that PPI suppliers, while working as cost system facilitators, should not register clients belonging to banks or different PPI issuers.
Currently, UPI transactions involving financial institution accounts could be carried out using both the financial institution’s UPI app or third-party functions. However, UPI funds involving PPIs are restricted to the cellular utility supplied by the PPI issuer.
UPI, developed by the National Payments Corporation of India, features as an instantaneous cost system that allows cellular-primarily based interbank transfers.
What are PPIs?
PPIs function cost instruments that permit customers to buy items and providers, entry monetary providers, and switch funds primarily based on their saved worth.
What are Full-KYC PPIs
Banks and non-banks present these PPIs after finishing Know Your Customer (KYC) verification. Users can make the most of these PPIs for buying items and providers, transferring funds, or withdrawing money, as per RBI.
