RBI proposes to permit linking of PPIs through third-party UPI applications - (05 Apr 2024)
Banking
In order to provide more flexibility to PPI holders, it is now proposed to permit linking of PPIs through third-party UPI applications. This will enable the PPI holders to make UPI payments like bank account holders. This will further enhance customer convenience and boost adoption of digital payments for small value transactions.At present, UPI payments from bank accounts can be made by linking a bank account through the UPI App of the bank or using any third-party UPI application. However, the same facility is not available for PPIs. PPIs can currently be used to make UPI transactions only by using the application provided by the PPI issuer.
Further, in view of the popularity and acceptance of UPI, as also the benefits seen from the availability of UPI for card-less cash withdrawal at ATMs, it is now proposed to facilitate cash deposit facility through use of UPI.Cash Deposit Machines (CDMs) deployed by banks enhance customer convenience while reducing cash-handling load on bank branches. The facility of cash deposit is presently available only through use of debit cards.
PPIs are payment instruments that facilitate purchase of goods and services, including financial services, remittance facilities, etc., against the value stored on such instruments. PPIs may be loaded / reloaded by, cash, debit to a bank account, credit and debit cards, and other PPIs. The electronic loading / reloading of PPIs shall be through these payment instruments issued only by regulated entities in India and shall be in INR only. The PPIs may be issued as cards, wallets, and any such electronic or digital form / instrument which can be used to access the PPI and to use the amount therein.
Tags : DIGITAL PAYMENTS LINKING PPIS
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