RBI permits UPI transactions via prepaid payment instruments using third-party apps

The Reserve Bank of India (RBI) has announced that Unified Payments Interface (UPI) transactions can now be processed through Prepaid Payment Instruments (PPIs) via third-party apps. This move allows users to link PPIs like wallets and gift cards with UPI, enhancing the accessibility and convenience of digital payments. The RBI’s decision is expected to drive further adoption of UPI and facilitate seamless transactions across various payment platforms. It also promotes the growth of fintech companies by offering new avenues for PPI players to integrate their services with UPI, expanding India’s digital payment ecosystem.