The Reserve Bank of India (RBI) on December 27, 2024, issued the notification regarding the Master Directions on Prepaid Payment Instruments (PPIs).
The following has been stated namely: -
• Under 11.6 which states “Requirements for achieving interoperability through UPI” the following has been inserted namely: -
“11.6.3 A PPI issuer shall enable holders of only its full-KYC PPIs to make UPI payments by linking its customer PPIs to its UPI handle. UPI transactions from PPI on the issuer’s application shall be authenticated using the customer’s existing PPI credentials. Such a transaction will, thus, be pre-approved before it reaches the UPI system. A PPI issuer, in its capacity as a PSP, shall not on-board customers of any bank or any 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.”
[Notification No. RBI/DPSS/2021-22/82]
