Business Business: Prepaid cardholders can make payments through UPI The Reserve Bank of India (RBI) has given a big gift to prepaid cardholders. Actually, the Reserve Bank has allowed sending and receiving UPI payments through third-party mobile applications. We are happy to announce that this decision of the Central Bank will provide more convenience to prepaid payment instrument (PPI) holders such as gift cards, metro cards and digital wallets.
In a circular, the Reserve Bank said that it has decided to enable PPI UPI payments with full KYC through third-party UPI apps. Similarly, PPI can also receive UPI payments. RBI said, PPI issuers should ensure that UPI payments are made only to full KYC PPI holders by linking customers to their UPI categories. UPI transactions from PPI are authenticated in the issuer app using the customer’s existing PPI ID. This means that such transactions are pre-verified before reaching the UPI system.
UPI payments can be made from a bank account through the bank’s UPI app or a third-party app provider. However, PPI UPI payments can only be made through a mobile app provided by the PPI issuer.
