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Home India Reserve Bank of India Notifications Unified Payments Interface (UPI) access for Prepai... (Official PDF)
Date: 27th December 2024 Jurisdiction: India, Central Government

Unified Payments Interface (UPI) access for Prepaid Payment Instruments (PPIs) - 27th December 2024 - Reserve Bank of India - Gazette Notification PDF

Issued by Reserve Bank of India

Read or download the official PDF of this gazette notification issued by the Reserve Bank of India on 27th December 2024.

Executive Summary & Key Takeaways

Policy Summary: Enabling UPI Access for PPIs through Third-Party Applications

Date: December 27, 2024

Issuing Authority: Reserve Bank of India (RBI)

Subject: Extension of Unified Payments Interface (UPI) access to Prepaid Payment Instruments (PPIs) through third-party applications.

Purpose: To broaden the usability of full-Know Your Customer (KYC) compliant PPIs by enabling UPI payments from and to these PPIs via third-party UPI applications.

Background: Previously, UPI payments involving PPIs were restricted to the mobile application provided by the PPI issuer. This policy change addresses this limitation.

Key Provisions:

  • Allows holders of full-KYC PPIs to make and receive UPI payments through third-party UPI applications.
  • PPI issuers must enable holders of their full-KYC PPIs to make UPI payments by linking customer PPIs to the UPI handle issued to the PPI issuer (acting as a Payment Service Provider - PSP).
  • UPI transactions originating from PPIs via third-party applications must be authenticated using UPI credentials.
  • PPI issuers may facilitate discovery of their full-KYC PPIs on third-party UPI mobile applications, who, in turn shall enable such PPIs to be linked to their PSP handles.

Legal Basis: This circular is issued under Section 18 read with Section 102 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007). Amendments have been made to Master Directions CO.DPSS.POLC.No.S4790/02.14.006/2021-22 dated August 27, 2021, on Prepaid Payment Instruments (MDPPIs).

Affected Parties: All Prepaid Payment Instrument Issuers (Banks and Non-banks), National Payments Corporation of India (NPCI), and System Participants.

Contact Information: Gunveer Singh Chief General Manager-in-Charge Department of Payment and Settlement Systems, Central Office 14th Floor, Central Office Building, Shahid Bhagat Singh Road, Fort, Mumbai – 400 001 Phone: 91-22-2264 4995 Fax: 91-22-2265 9566, 2269 1557 Email: cgmdpsscorbi.org.in Website: www.rbi.org.in

Key Entities Referenced

Reserve Bank of India: The central bank of India, responsible for regulating the banking sector and monetary policy. Unified Payments Interface (UPI): A real-time payment system in India that facilitates instant fund transfers between two bank accounts or digital wallets. Prepaid Payment Instruments (PPIs): Payment instruments that store monetary value, such as mobile wallets and prepaid cards. National Payments Corporation of India (NPCI): An organization that operates various retail payment systems in India, including UPI. Payment and Settlement Systems Act, 2007: An act of the Indian Parliament that provides the legal framework for the regulation and supervision of payment systems in India. Mumbai, Maharashtra: The location of the Central Office of the Department of Payment and Settlement Systems of the Reserve Bank of India. Master Directions CO.DPSS.POLC.No.S4790/02.14.006/2021-22: RBI Master Direction on Prepaid Payment Instruments (PPIs). Gunveer Singh: Chief General Manager-in-Charge, Department of Payment and Settlement Systems, Reserve Bank of India.
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भारतीय �रज़वर् बैंक RESERVE BANK OF INDIA www.rbi.org.in RBI/2024-2025/97 CO.DPSS.POLC.No.S972/02-14-006/2024-25 December 27, 2024 All Prepaid Payment Instrument Issuers (Banks and Non-banks), National Payments Corporation of India (NPCI) and System Participants Madam / Dear Sir, Unified Payments Interface (UPI) access for Prepaid Payment Instruments (PPIs) through third-party applications Currently, UPI payments from / to a bank account can be carried out using the UPI application of that bank or of any third-party application provider. However, UPI payments from / to a PPI can only be carried out using the mobile application provided by the PPI issuer. 2. As announced in the Statement on Development and Regulatory Policies dated April 05, 2024, it has been decided to enable UPI payments from / to full-KYC PPIs through third-party UPI applications. This will enable PPI holders to make / receive UPI payments through the mobile application of third-party UPI applications. The relevant provisions have been amended in Master Directions CO.DPSS.POLC.No.S-479/02.14.006/2021-22 dated August 27, 2021 on Prepaid Payment Instruments (MD-PPIs) (see Annex). 3. This circular is issued under Section 18 read with Section 10(2) of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007). Yours faithfully, (Gunveer Singh) Chief General Manager-in-Charge भगु तान और �नपटान प्रणाल� �वभाग, केंद्र�य कायालर् य, 14 वी मिंजल, केंद्र�य कायालर् य भवन, शह�द भगत �सहं मागर्, फोटर्, मम्ु बई – 400 001 फोन: (91-22) 2264 4995, फैक्स Fax: (91-22) 2265 9566, 2269 1557, ई-मेल: cgmdpssco@rbi.org.in Department of Payment and settlement Systems, Central Office, 14th Floor, Central Office Building, Shahid Bhagat Singh Road, Fort, Mumbai – 400 001. Phone: (91-22) 2264 4995, Fax: (91-22) 2265 9566, 2269 1557, Email: cgmdpssco@rbi.org.in �हंद� आसान है, इसका प्रयोग बढ़ाइएAnnex Revised provisions of the MD-PPIs: Requirements for achieving interoperability through UPI Previous instructions Revised instructions 11.6.3. PPI holders shall be on-boarded for 11.6.3. A PPI issuer shall enable holders of UPI by their own PPI issuer only. PPI only its full-KYC PPIs to make UPI issuer shall only link its customer wallets to payments by linking its customer PPIs to the handle issued to it. PPI issuer as PSP its UPI handle. UPI transactions from PPI shall not on-board customers of any bank on the issuer’s application shall be or any other PPI issuer. authenticated using the customer’s existing PPI credentials. Such a 11.6.4. Authentication shall be completed by transaction will, thus, be pre-approved the PPI holder as per her / his existing before it reaches the UPI system. A PPI wallet credentials. In other words, a issuer, in its capacity as a PSP, shall not transaction will be pre-approved before it on-board customers of any bank or any reaches the UPI. other PPI issuer. 11.6.4. A PPI issuer may also facilitate discovery of its full-KYC PPIs on third- party UPI mobile applications, who, in turn shall enable such PPIs to be linked to their PSP handle/s. Such UPI transactions, from PPIs using third party UPI applications, shall be authenticated using the UPI credentials.

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