The banking regulator has now allowed ‘interoperability’ to transfer money from one wallet to another.
STC Monitoring Desk
December 29 (STC): Payments through digital mode continue to witness exciting innovations bringing more convenience to the customers. In a praise-worthy move the Reserve Bank of India (RBI) recently paved way for users of prepaid payment instruments (PPIs) to use third party apps as well instead of only the UPI functionality given by the PPI provider.
The apex bank has instructed all prepaid payment instrument (PPI) issuers to enable UPI payments from / to full-KYC PPIs through third-party UPI applications.
By virtue of this development, the PPI users will now be allowed to use third party apps as well and not only the UPI functionality provided by the PPI provider only. This means, for instance, PhonePe customers can now use Google Pay for the UPI payments. Precisely, the RBI has now allowed ‘interoperability’ to transfer money from one wallet to another.
Notably, the RBI had announced about this plan to introduce interoperability in April. The banking regulator in its statement on April 5, 2024 stated: “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. 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.”
Meanwhile, UPI’s popularity and now ‘interoperability’ to ensure ease of use is going to give a massive boost to the digital payment ecosystem of the country.(STC)
https://www.rbi.org.in/commonman/english/Scripts/PressReleases.aspx?Id=3179