RBI Allows UPI Payments: The Reserve Bank of India (RBI) has now made it even easier to transfer money through the Unified Payment Interface Wallet i.e. UPI Wallet. Now customers will also be able to access their wallet through third party apps. Meaning, you will be able to transfer funds from the wallet present on any app to any UPI app.
The Reserve Bank of India has issued a circular allowing payment / transfer from third party UPI in verified wallets. For this, it will be mandatory for those holding PPI i.e. prepaid payment instruments to do KYC. After this decision of the Reserve Bank, banks or non-banks will be able to issue their own PPI wallet.
Step Taken to Ease Digital Payment
The purpose of this green signal from the Reserve Bank is to ease the process of digital payment. With this, payment of money from UPI on PPI wallet can also be accepted and money can also be sent on the UPI platform.
According to RBI, currently, UPI transactions related to a bank account are done through the bank’s UPI app or third party UPI, but to do UPI transactions through a digital wallet, the transaction has to be done through the app on which the number is registered.
Understand Prepaid Payment Instruments like This
You currently transact money through apps like Google Pay, PhonePe or Amazon Pay, but this is possible only when these digital payment wallets are linked to a bank account. Now, according to the new RBI rule, you will be able to transact or make payments through such digital payment wallets which are not linked to any bank account.
These will be third party apps i.e. prepaid instruments. That is, a digital wallet in which money has to be deposited first through a bank account, UPI or cash. Then you will be able to pay only that much money.
Like you use gift cards, metro rail cards etc. All these are PPI wallets. All the money deposited in them through cash or transfer from the bank account can only be used for payment. But after the new order of the Reserve Bank or after getting their KYC done, money can also be transferred through them to apps like Google Pay, Phone Pay etc.
UPI is Operated by NCPI
RBI has the operation of RTGS and NEFT payment systems in India. Systems like IMPS, RuPay, UPI are operated by the National Payment Corporation of India (NPCI). The government had made a zero-charge framework mandatory for UPI transactions from January 1, 2020.
You May Also Read:
What is Digital Marketing in Hindi
SEO Interview Questions and Answers
How Does UPI Work?
For UPI service, you have to create a virtual payment address. After this, it has to be linked to the bank account. After this, there is no need to remember your bank account number, bank name or IFSC code etc. The payer simply processes the payment request according to your mobile number.
If you have his/her UPI ID (e-mail ID, mobile number or Aadhaar number), then you can easily send money through your smartphone. Not only money, but you will not need net banking, credit or debit card for utility bill payment, online shopping, shopping etc. You can do all these things through Unified Payment Interface system.
