RBI Allows UPI Access for Prepaid Instruments via Third-Party Apps

5 Apr 2024 , 01:07 PM

The Reserve Bank of India (RBI) announced on April 5 its decision to permit access to the Unified Payments Interface (UPI) through third-party apps for prepaid payment instruments (PPIs).

Governor Shaktikanta Das stated in the Monetary Policy Committee (MPC) statement that currently, UPI payments from PPIs are restricted to the web or mobile app provided by the PPI issuer. However, the RBI proposes to allow the use of third-party UPI apps for such payments.

The MPC maintained the key repo rate at 6.5% for the seventh consecutive time, aligning with market expectations, with a primary focus on curbing inflation. The stance remains unchanged as the withdrawal of accommodation, with the decisions taken by a majority of 5:1.

Additionally, the RBI announced the permission for depositing money in cash deposit machines (CDMs) via UPI, aiming to enhance customer convenience and streamline currency handling processes at banks.

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