RBI to allow UPI payments from PPI wallets via third-party apps; may benefit Paytm

RBI’s move is seen to benefit Paytm as it will likely allow users to make UPI payments via Paytm application instead of Paytm Payments Bank, say market participants [View in browser]( [See all newsletters]( 06 April 2024 RBI to allow UPI payments from PPI wallets via third-party apps; may benefit Paytm [Reserve Bank of India] [Reserve Bank of India]( has proposed to permit the linking of Prepaid Payment Instruments (PPIs) through third-party [UPI]( applications, thus allowing PPI wallet holders more flexibility to make UPI payments. - Also read: [RBI to modify LCR framework to facilitate better management of liquidity risk by banks]( At present, UPI payments from bank accounts can be made only by linking a bank account through the UPI application of the bank or using any third-party UPI application. However, the same facility is not available for PPIs, and wallet holders can make UPI transactions only by using the web or mobile application provided by the PPI issuer. “This will further enhance customer convenience and boost adoption of digital payments for small value transactions,” Governor Shaktikanta Das said. The move is seen benefitting [One97 Communications]( the parent company of [Paytm]( as it is likely to allow its users to make UPI payments from the Paytm wallet via the Paytm application instead of Paytm Payments Bank, according to market participants. Paytm managed to [secure the TPAP (Third Party Application Provider) licence from NPCI]( after the [RBI asked Paytm Payments Bank to wind down operations effective March 15, 2024](. The PPI licence is with the payments bank and not with the parent company. You Might Also Like [RBI to modify LCR framework to facilitate better management of liquidity risk by banks]( [Money & Banking]( [RBI to modify LCR framework to facilitate better management of liquidity risk by banks]( [RBI retains 7% GDP growth forecast for FY25: RBI Governor Shaktikanta Das]( [Economy]( [RBI retains 7% GDP growth forecast for FY25: RBI Governor Shaktikanta Das]( [Congress manifestoes (2004-2024): Distributive justice plus well-regulated markets and reformed tax laws]( [Economy]( [Congress manifestoes (2004-2024): Distributive justice plus well-regulated markets and reformed tax laws]( [SAT gets new presiding officer, technical member]( [Markets]( [SAT gets new presiding officer, technical member]( Stay informed Subscribe to businessline to stay up-to-date with in-depth business news from India [arrow]( Copyright @ 2024, THG PUBLISHING PVT LTD. If you are facing any trouble in viewing this newsletter, please try [here]( Manage your newsletter subscription preferences [here]( If you do not wish to receive such emails go [here](