RBI to allow UPI access to prepaid payment instruments through third-party apps

This will further enhance customer convenience and boost adoption of digital payments for small value transactions, Das said.

The Reserve Bank of India (RBI) on April 5 said it will allow Unified Payments Interface (UPI) access to prepaid payment instruments through third party apps.

“At present, UPI payments from prepaid payment instruments (PPIs) can be made only by using the web or mobile app provided by the PPI issuer. It is now proposed to permit the use of third-party UPI apps for making UPI payments from PPI wallets,” Governor Shaktikanta Das said in his monetary policy committee (MPC) statement.

The MPC left the key repo rate unchanged at 6.5 percent for the seventh time in a row, in line with the market expectations, with its focus firmly on bringing inflation down. It also left the stance unchanged as withdrawal of accommodation. The decisions were takes with a 5:1 majority.

The RBI also allowed depositing money in the cash deposit machines (CDMs) through UPI, saying the measure would enhance customer convenience and make the currency handling process at banks more efficient.

The Reserve Bank of India's monetary policy committee (MPC) on April 5 left the key repo rate unchanged at 6.5 percent for the seventh time in a row, in line with the market expectations, with its focus firmly on bringing inflation down.

In its first meeting of FY 25, the rate-setting panel left the stance unchanged as withdrawal of accommodation. The decisions were takes with a 5:1 majority.

Repo is the rate at which the central bank lends money to banks for the short term.

The RBI Governor also announced that there will be no changes in the GDP growth forecast for FY25. The GDP growth estimate was retained at 7 percent for the current fiscal year. On the inflation front, the RBI MPC sees it at 4.5 percent for FY25.

Between May 2022 and February 2023, the rate-setting panel raised the repo rate by 250 basis points (bps) but has since held it steady.