RBI Grants UPI Access To Prepaid Payment Instruments, Enabling Seamless Transactions Through Third-Party Apps | Paisa Live

RBI has granted third-party applications access to Prepaid Payment Instruments (PPIs) via UPI, allowing PPI holders to make and receive UPI payments through mobile apps. Previously, UPI payments could only be made using bank accounts or designated UPI apps. This new policy, announced in a press release, was based on RBI's regulatory decision in April 2024. PPIs allow users to load funds onto cards or digital wallets for future transactions, such as purchasing goods or services, or depositing money. Only full-KYC PPI holders can link their PPI with UPI. This shift enables smoother transactions, pre-authenticated before reaching the UPI system. Since January 2024, UPI has processed transactions worth over ₹223 lakh crores, showing significant growth in digital payments.