New UPI guidelines pertaining to prepaid instruments’ access: Now, use third-party applications to transfer funds from your prepaid wallet

Prepaid Payment Instruments (PPIs) via Third Party App Access with UPI: In his monetary policy committee (MPC) announcement on Friday, Reserve Bank of India (RBI) governor Shaktikanta Das revealed that users may now make UPI payments via third-party applications using prepaid payment methods, including digital wallets.
Shaktikanta Das, the governor of the RBI, emphasised that wallet owners are no longer limited to using the issuer’s app for UPI transactions.

They may now conduct smooth transactions with any third-party UPI app.
Currently, the only way to make UPI payments from Prepaid Payment Instruments (PPIs) is via the PPI issuer’s mobile app or website. According to Shaktikanta Das, it is now being suggested to allow users to make UPI payments using PPI wallets using third-party UPI applications. He went on, “This will increase customer convenience even more and encourage the use of digital payments for low-value transactions.”
According to Vivek Iyer, a partner at Grant Thornton Bharat, who was reported by ET, granting PPI access to UPI is a major advancement in improving interoperability throughout the payment environment. According to him, the RBI’s strategy seems to be focused on increasing UPI’s presence across the ecosystem in order to foster competition among different products and spur further innovation.