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RBI/DPSS/2021-22/82 CO.DPSS.POLC.No.S-479/02.14.006/2021-22
The RBI has revised its guidelines to enable UPI payments from full-KYC PPIs through third-party UPI applications, facilitating greater interoperability. This move aligns with the announcement made in April 2024, aiming to broaden the scope for PPI holders to use third-party apps for UPI payments. The relevant provisions in the Master Directions have been updated accordingly.
Previous Provisions:
1. PPI holders could only make UPI payments through the mobile app provided by the PPI issuer.
2. PPI issuers were restricted to linking wallets to their own UPI handles, and could not onboard customers from other banks or PPIs.
3. Transactions required authentication through the PPI holder’s wallet credentials before reaching the UPI system.
Revised Provisions:
1. PPI issuers can now enable full-KYC PPI holders to make UPI payments by linking their PPIs to the issuer’s UPI handle.
2. The authentication for these transactions will be done using the existing PPI credentials.
3. Additionally, PPI issuers can facilitate the discovery of full-KYC PPIs on third-party UPI applications, enabling linkage to third-party UPI handles for transactions.
In reference to this, the Master Direction of PPI is also updated
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