For rural communities, where banking infrastructure can be limited, this integration represents a significant leap forward
FinTech BizNews Service
Mumbai, 27 December, 2024: The Reserve Bank of India (RBI) has permitted prepaid payment instrument (PPI) holders to make and receive Unified Payments Interface (UPI) payments through third-party mobile applications. In this context, Mr. Dilip Modi, Founder & CEO of Spice Money, has shared exclusive insights on this significant development:
“The Reserve Bank of India’s decision to enable UPI payments through full-KYC prepaid payment instruments (PPIs) on third-party applications is a groundbreaking step towards driving financial inclusion across the country. By bridging the gap between PPIs and UPI, this initiative enhances the accessibility and convenience of digital transactions for millions of users, enabling them to transact seamlessly beyond the confines of individual platforms.
For rural communities, where banking infrastructure can be limited, this integration represents a significant leap forward. At Spice Money, we have seen how empowering underserved communities with digital tools creates real change. This development will allow PPI users—including those relying on gift cards, digital wallets, or transit cards—to participate in the digital payment ecosystem with greater ease. The enhanced interoperability between PPIs and UPI not only simplifies transactions but also instills greater trust and security through pre-approved authentication mechanisms. This is critical for rural users and first-time adopters who value straightforward, reliable solutions.
This decision aligns with India’s vision of a robust, inclusive digital economy. By widening the scope of UPI to incorporate PPIs, the RBI is not just fostering innovation but also opening new avenues for individuals and businesses to thrive in the digital age. It is a remarkable milestone in making digital payments accessible to all, including those in the remotest parts of our nation.”
