Through Sebi’s payment mechanism ‘@Valid’, all market intermediaries will be able to use it to collect funds from clients, benefitting brokers, mutual funds, research analysts, investment advisers, and others.
In June 2022, the RBI allowed RuPay credit cards to be linked to UPI. No other credit card has this facility. According to banking experts, allowing other networks to integrate with UPI will broaden the scope of digital payments, fostering competition and innovation.
The move follows markets regulator Sebi allowing the facility through the UPI app developed by the National Payment Corporation of India (NCPI).
RBI Governor Shaktikanta Das remains bullish on India's growth in the digital sector. Speaking with IMF's Asia & Pacific Director Krishna Srinivasan, the RBI chief discussed the frontier issues of central banking in the context of the post-pandemic recovery.
The facilitation fee of 0.3 per cent can generate around Rs 5,000 crore in 2023-24, said the study titled ’Charges for PPI-based UPI payments–The Deception’.