The Reserve Bank of India (RBI) has announced a new policy that allows individuals to use prepaid payment instruments (PPIs) like digital wallets to make payments via UPI through third-party apps. A new policy allows wallet holders to ditch their issuer’s app and use any third-party UPI app for UPI transactions, streamlining the process. This move aims to boost customer convenience and encourage more small-value digital transactions.
According to Vivek Iyer, Partner at Grant Thornton Bharat, enabling UPI access for PPI is a significant stride towards enhancing interoperability within the payment landscape, and the RBI‘s approach appears geared towards expanding UPI‘s reach across the ecosystem to promote competition among various products and stimulate additional innovation. This move is a positive step towards increasing the use of digital payments in India.
