PPI interoperability: How RBI’s new UPI rule set to ease digital payments? An explainer

The Reserve Bank of India recently allowed the users of prepaid payment instruments to access UPI services via third party applications. This will enable the PPI holders to make UPI payments like bank account holders,” reads the RBI statement dated April 5, 2024. So, the latest move on Dec 27 was a follow-up action where the RBI instructed all prepaid payment instrument issuers to enable UPI payments from / to full-KYC PPIs through third-party UPI applications. UPI is essential payment mode for every day usage of more than 500 million Indians, and this move will make PPI instruments a lot more user friendly," says Riya Bhattacharya, Founder, Rio Money