In a recent announcement, RBI Governor Shaktikanta Das unveiled a significant move aimed at enhancing customer convenience and promoting the adoption of digital payments. The Reserve Bank of India (RBI) has given the green light for the utilization of third-party UPI apps to facilitate UPI payments from Prepaid Payment Instruments (PPI) wallets. This decision marks a pivotal moment in the realm of digital transactions, offering users greater flexibility and ease in conducting small value transactions.
Previously, UPI payments from PPIs were restricted to the respective web or mobile applications provided by the PPI issuers. However, with the introduction of third-party UPI apps, users can now enjoy enhanced convenience and accessibility in making payments. This strategic move is expected to catalyze the proliferation of digital payments across the economy, streamlining the transaction process for individuals and businesses alike.
Additionally, the RBI Governor announced another significant development regarding the distribution of Central Bank Digital Currency (CBDC). In a bid to expand the reach of CBDC-Retail, the RBI has decided to authorize non-bank payment system operators to facilitate the distribution of CBDC. This initiative aims to make CBDC more accessible to a wider spectrum of users, thereby fostering greater inclusivity in digital currency transactions.
Currently, CBDC pilots are underway, showcasing a growing array of use cases and involving numerous participating banks. By allowing non-bank payment system operators to offer CBDC wallets, the RBI seeks to facilitate comprehensive testing of the CBDC platform's resilience in handling multi-channel transactions. This strategic move underscores the RBI's commitment to fostering innovation and efficiency in the digital payment ecosystem, paving the way for a more seamless and inclusive financial landscape.
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