Context:
The Reserve Bank of India (RBI) has decided to allow prepaid instrument holders (PPIs) to make/receive UPI payments through third-party mobile applications.
Key Highlights:
- Aim
- To Enable PPI holders to make and receive UPI payments through the mobile application of third-party UPI applications.
- Provide more flexibility to holders of PPIs such as gift cards, metro rail cards and digital wallets, among others.
Prepaid payment instruments (PPIs)
Prepaid payment instruments (PPIs) are financial tools which allows user to load funds in advance to purchase goods and services. PPIs are also known as prepaid cards or stored value cards. e.g. gift cards, metro rail cards and digital wallets.
Third-Party Application Provider
It is an entity that provides the UPI compliant app(s) to the end-user customers to facilitate UPI-based payment transactions. Some examples include mobile wallets, merchant apps, or any other platform that utilises UPI for payments.
- NPCI, the umbrella organisation for operating retail payments and settlement systems in India, owns and operates the UPI platform.
