RBI's New UPI Features To Enhance Prepaid Wallet Flexibility For UPI Transactions
Launched in 2016, India's UPI payment has become an essential part of every individual, especially for retail digital payments in India, and its adoption has noticed rapid growth. Keeping its huge progress in mind, the Reserve Bank of India proposed two extra features for UPI users, including depositing cash at Cash Deposit Machines using UPI and also making UPI payments from prepaid wallets (PPIs)
The financial industry supported this move and said it is a progressive step to boost the adoption of interoperable cash deposits. "Reserve Bank of India's proposed initiative to enable UPI-based cash deposits is a progressive move that will boost the adoption of interoperable cash deposits, further accelerating the use of UPI and driving financial inclusion, particularly in areas where card penetration is limited. We welcome this move as it aligns with our vision of leveraging UPI’s reach and convenience for offering a cash deposit facility," said Sumil Vikamsey, Managing Director & Chief Executive Officer – Cash Business, Hitachi Payment Services.
RBI’s recent announcement on PPIs is a positive step towards enhancing UPI’s usability and accessibility for millions of consumers, said Fintech Firm NPST's Co-founder and CEO, Deepak Chand Thakur. "Currently, money in a prepaid wallet (PPI) can only be used for UPI transactions through the app offered by the company that issued the wallet, which can be limiting. The new regulation aims to provide users with greater transactional flexibility. Through such rules, RBI is showcasing its commitment to creating a more open UPI ecosystem, which could broadbase the digital economy," added Thakur.
Spice Money Founder, Dilip Modi, called it a significant step towards financial inclusion. He said, "It grants PPI users the ability to seamlessly integrate their accounts with a wide range of UPI-enabled services, mirroring the convenience and flexibility traditionally reserved for standard bank account holders. This will not only simplify the payment process for PPI users but also open up a plethora of digital payment opportunities previously inaccessible to them, further enhancing customer convenience and boosting the adoption of digital payments, especially among small businesses.
