Important news for UPI users..!! This facility is also available..!?

Full-KYC prepaid payment instrument (PPI) holders can now make and receive Unified Payments Interface (UPI) payments using third-party mobile applications. If you have a bank account, this news will be useful for you. The bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india has launched a special facility for its customers. The special feature of this facility is that now customers can deposit money through UPI. Full-KYC prepaid payment instrument (PPI) holders can now make and receive Unified Payments Interface (UPI) payments using third-party mobile applications, the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india (RBI) has announced.

Earlier, PPI users could only use mobile apps provided by their PPI providers for UPI transactions. This move by RBI is expected to boost digital payments and provide greater convenience to users across the country.

What has changed now?

In a circular issued on Friday, RBI said that full KYC PPI holders will be allowed to link their wallets with third-party UPI handles. This will enable customers to conduct transactions authorized by their existing PPI credentials. Such transactions will be "pre-authorized" before reaching the UPI system. This will ensure a secure payment experience.
PPI providers will be able to make UPI payments only to their fully-KYC PPI holders, by linking their customer PPI with their UPI handles. UPI transactions from PPI will be authenticated using the customer’s existing PPI credentials in the issuer’s application. With this change, users of other PPIs like gift cards, metro rail cards, and wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital wallets will get wider access to UPI transactions. They can now make instant, real-time payments using popular third-party UPI apps like PhonePe, google pay, paytm, and others. Here are the benefits of this.

1. Better choice: Instead of being limited to the service provider’s app, PPI holders will be allowed to choose any UPI app of their choice.

2. Wider usage: It encourages more frequent use of wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital transactions. This will help a lot, especially for small value payments.

3. Rapid adoption: The bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india has stated that this development will encourage wider adoption of digital payments across India.

Currently, PhonePe has a nearly 50% share in the UPI market. google pay has 37% and paytm has 7%.

Background of UPI and PPI:

1. UPI (Unified Payments Interface): Developed by the National Payments Corporation of india (NPCI) to facilitate instant inter-bank transactions through mobile phones.

2. PPIs (Prepaid Payment Instruments): Help users save money to buy goods and services, avail financial services, or send money. Examples include prepaid wallets, gift cards, and transit cards.
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Sowmiya Sriram

28/12/2024 10:15 PM