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RBI allows PPI holders to make UPI payment using third-party apps

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Abhishek012

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RBI allows PPI holders to make UPI payment using third-party apps:

All Prepaid Payment Instrument Issuers (Banks and Non-banks), National Payments Corporation of India (NPCI) and System Participants

Unified Payments Interface (UPI) access for Prepaid Payment Instruments (PPIs) through third-party applications -

Currently, UPI payments from / to a bank account can be carried out using the UPI application of that bank or of any third-party application provider. However, UPI payments from / to a PPI can only be carried out using the mobile application provided by the PPI issuer.

2. As announced in the Statement on Development and Regulatory Policies dated April 05, 2024, it has been decided to enable UPI payments from / to full-KYC PPIs through third-party UPI applications. This will enable PPI holders to make / receive UPI payments through the mobile application of third-party UPI applications. The relevant provisions have been amended in Master Directions CO.DPSS.POLC.No.S-479/02.14.006/2021-22 dated August 27, 2021 on Prepaid Payment Instruments (MD-PPIs) (see Annex).

3. This circular is issued under Section 18 read with Section 10(2) of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007).

Revised provisions of the MD-PPIs:

Requirements for achieving interoperability through UPI -

Previous InstructionsRevised Instructions
11.6.3. PPI holders shall be on-boarded for UPI by their own PPI issuer only. PPI issuer shall only link its customer wallets to the handle issued to it. PPI issuer as PSP shall not on-board customers of any bank or any other PPI issuer.11.6.3. A PPI issuer shall enable holders of only its full-KYC PPIs to make UPI payments by linking its customer PPIs to its UPI handle. UPI transactions from PPI on the issuer’s application shall be authenticated using the customer’s existing PPI credentials. Such a transaction will, thus, be pre-approved before it reaches the UPI system. A PPI issuer, in its capacity as a PSP, shall not on-board customers of any bank or any other PPI issuer.
11.6.4. Authentication shall be completed by the PPI holder as per her / his existing wallet credentials. In other words, a transaction will be pre-approved before it reaches the UPI.11.6.4. A PPI issuer may also facilitate discovery of its full-KYC PPIs on third-party UPI mobile applications, who, in turn shall enable such PPIs to be linked to their PSP handle/s. Such UPI transactions, from PPIs using third party UPI applications, shall be authenticated using the UPI credentials.

Source - https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT9771BAA9F8215C4661BDBD7EE83A983FC8.PDF
 
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amitagl27 said:
A great move indeed. Makes a lot of sense and life becomes simple. No longer need to open Paytm for paytm merchant, amazon pay for amazon pay merchant and so on....

In simple terms:

Imagine you have money in your Amazon Pay wallet (which is a type of prepaid account). Before, you could only use that money within the Amazon Pay app for things like shopping on Amazon or making payments to other Amazon Pay users.

Now, the RBI has said you can use that same Amazon Pay money through other apps like Google Pay or PhonePe. This means you can send money to your friends who use Google Pay or pay at a store that accepts payments through PhonePe, all using the funds in your Amazon Pay account.
Click to expand...
Kya bol rahe ho ? you can still use Amazon Pay wallet balance to pay or send money to your friends who use Google Pay or pay at a store that accepts payments through PhonePe.

Use Amazon app, go to scan or send money option choose >> Wallet UPI balance option and pay.

The only difference is that now you can also access Amazon pay Wallet through 3rd party UPI apps.
 
Last edited:
amitagl27 said:
A great move indeed. Makes a lot of sense and life becomes simple. No longer need to open Paytm for paytm merchant, amazon pay for amazon pay merchant and so on....

In simple terms:

Imagine you have money in your Amazon Pay wallet (which is a type of prepaid account). Before, you could only use that money within the Amazon Pay app for things like shopping on Amazon or making payments to other Amazon Pay users.

Now, the RBI has said you can use that same Amazon Pay money through other apps like Google Pay or PhonePe. This means you can send money to your friends who use Google Pay or pay at a store that accepts payments through PhonePe, all using the funds in your Amazon Pay account.
Click to expand...
kuchbhi
its already happening duh!
 
blacktiger said:
whats the use of ppi based wallets? credit card based upi gives better rewards
Click to expand...
PPI based wallets loot -

If you dnt have credit card then apply HDFC Millennia debit card and load money to wallet and get 1% cashback upto Rs400 per month.

Kotak 811 Super Saving Account Debit card - load to Ebixcash wallet UPI and get 5% upto Rs500 cashback per month (here Ebixcash wallet UPI merchant MCC Code category is eligible category). Daily load limit is 5k for Ebixcash wallet UPI.

RBL Signature+ Debit card - Load to Ebixcash wallet UPI and get 2% cashback per month, 1% default cashback and 5k extra after annual spend more than 5 lakhs+ (here Ebixcash wallet UPI merchant MCC Code category is eligible category). Daily load limit is 5k for Ebixcash wallet UPI.

RBL Enterprise Debit card - Well, you can use Ebixcash wallet UPI only for milestone benefit complete and transfer to bank or pay anywhere you want. Daily load limit is 5k for Ebixcash wallet UPI.
 
Abhishek012 said:
Kya bol rahe ho ? you can still use Amazon Pay wallet balance to pay or send money to your friends who use Google Pay or pay at a store that accepts payments through PhonePe.

Use Amazon app, go to scan or send money option choose >> Wallet UPI balance option and pay.

The only difference is that now you can also access Amazon pay Wallet through 3rd party UPI apps.
Click to expand...
Thanks for info.
Wasn't aware its already available 🙂

Long back when paytm was working, I tried to pay few places using paytm wallet but it worked only when the merchant used Paytm qr code.
Never tried with Amazon Pay Wallet though.
 
amitagl27 said:
A great move indeed. Makes a lot of sense and life becomes simple. No longer need to open Paytm for paytm merchant, amazon pay for amazon pay merchant and so on....

In simple terms:

Imagine you have money in your Amazon Pay wallet (which is a type of prepaid account). Before, you could only use that money within the Amazon Pay app for things like shopping on Amazon or making payments to other Amazon Pay users.

Now, the RBI has said you can use that same Amazon Pay money through other apps like Google Pay or PhonePe. This means you can send money to your friends who use Google Pay or pay at a store that accepts payments through PhonePe, all using the funds in your Amazon Pay account.
Click to expand...
Nonsense. Someone delete this to avoid misinformation
 
UPI-Credit Card Payment Dispute: On4Off, NPCI To Mediate On Differences

On4Off has accused NPCI of unauthorised use of its patented technology, alleging Rs100 crore in RuPay credit card transactions via UPI QR codes in October 2023 alone.

The Delhi High Court on Monday referred On4Off Trading Pvt. Ltd. and National Payments Corporation and thirteen others to mediation on Monday. The dispute initiated by On4Off seeks to bar others from using the UPI Pay method through credit cards. This will be a pre-litigation mediation.

The single-judge bench of Justice Amit Bansal appointed former Supreme Court Judge AK Sikri as the mediator.

NPCI provides for linking a user’s Rupay credit card to their UPI account to make transactions.

On4Off has asked the high court to stop NPCI and others from using the UPI Pay method through credit cards as immediate relief and a permanent one. The company submitted that it developed this technology in 2017 and filed for a patent on Jan. 16, 2022.

The patent application for the technology was first published on April 8, 2022 and it worked its way through the examination channel of the Indian Patent Office, according to the information given in the petition copy seen by NDTV Profit.

The patent office then came out with issues about the lack of inventive steps in the claim.

However, as per the filing copy, On4Off responded to these objections in Nov. 2022, maintaining that the patented process allows interoperability between credit card payment rails and dynamic UPI QR codes and hence was different from existing technologie.

Details of Alleged Infringement

Back in the year 2022, the Reserve Bank of India proposed to link RuPay credit cards with UPI. The proposal was then backed by a circular on Oct. 4, 2022, and such transactions were finally allowed.

Now it is the case of On4Off, represented by AK & Partners, that NPCI has been using the technology that enables such transactions without any right or authorisation. The national body enabled transactions between RuPay credit cards and UPI QR codes, the petitioner has alleged.

It is further alleged that NPCI has internalised the patented process, using it for RuPay credit card transactions to the exclusion of other card networks. The plaintiff argued that this not only violates its patent rights but also distorts the market by adversely affecting other card manufacturers.

According to On4Off, transactions worth Rs100 crore were facilitated using RuPay credit cards on UPI QR codes in October 2023 alone.

On4Off has also accused third-party application providers and banking institutions of facilitating the patented process without authorisation, thereby gaining illegal benefits.

These third-party application providers include Paytm Payments Bank, Google India Digital Services Private Limited (Google Pay), PhonePe Private Limited, Punjab National Bank (Bharat Interface for Money), ICICI Bank (iMobile Pay), YES Bank (Yes Pay Next), Freecharge (acquired by Axis Bank), Canara Bank (Canara AI1), Amazon.com, Inc. (Amazon Pay), Fino Payments Bank, Gokiwi Private Limited, Samsung India Electronics Pvt Ltd (Samsung Wallet), and Shriram Finance Limited.
 
imrtbpsp said:
UPI-Credit Card Payment Dispute: On4Off, NPCI To Mediate On Differences

On4Off has accused NPCI of unauthorised use of its patented technology, alleging Rs100 crore in RuPay credit card transactions via UPI QR codes in October 2023 alone.

The Delhi High Court on Monday referred On4Off Trading Pvt. Ltd. and National Payments Corporation and thirteen others to mediation on Monday. The dispute initiated by On4Off seeks to bar others from using the UPI Pay method through credit cards. This will be a pre-litigation mediation.

The single-judge bench of Justice Amit Bansal appointed former Supreme Court Judge AK Sikri as the mediator.

NPCI provides for linking a user’s Rupay credit card to their UPI account to make transactions.

On4Off has asked the high court to stop NPCI and others from using the UPI Pay method through credit cards as immediate relief and a permanent one. The company submitted that it developed this technology in 2017 and filed for a patent on Jan. 16, 2022.

The patent application for the technology was first published on April 8, 2022 and it worked its way through the examination channel of the Indian Patent Office, according to the information given in the petition copy seen by NDTV Profit.

The patent office then came out with issues about the lack of inventive steps in the claim.

However, as per the filing copy, On4Off responded to these objections in Nov. 2022, maintaining that the patented process allows interoperability between credit card payment rails and dynamic UPI QR codes and hence was different from existing technologie.

Details of Alleged Infringement

Back in the year 2022, the Reserve Bank of India proposed to link RuPay credit cards with UPI. The proposal was then backed by a circular on Oct. 4, 2022, and such transactions were finally allowed.

Now it is the case of On4Off, represented by AK & Partners, that NPCI has been using the technology that enables such transactions without any right or authorisation. The national body enabled transactions between RuPay credit cards and UPI QR codes, the petitioner has alleged.

It is further alleged that NPCI has internalised the patented process, using it for RuPay credit card transactions to the exclusion of other card networks. The plaintiff argued that this not only violates its patent rights but also distorts the market by adversely affecting other card manufacturers.

According to On4Off, transactions worth Rs100 crore were facilitated using RuPay credit cards on UPI QR codes in October 2023 alone.

On4Off has also accused third-party application providers and banking institutions of facilitating the patented process without authorisation, thereby gaining illegal benefits.

These third-party application providers include Paytm Payments Bank, Google India Digital Services Private Limited (Google Pay), PhonePe Private Limited, Punjab National Bank (Bharat Interface for Money), ICICI Bank (iMobile Pay), YES Bank (Yes Pay Next), Freecharge (acquired by Axis Bank), Canara Bank (Canara AI1), Amazon.com, Inc. (Amazon Pay), Fino Payments Bank, Gokiwi Private Limited, Samsung India Electronics Pvt Ltd (Samsung Wallet), and Shriram Finance Limited.
Click to expand...
Who is this on4off?
 
imrtbpsp said:
UPI-Credit Card Payment Dispute: On4Off, NPCI To Mediate On Differences

On4Off has accused NPCI of unauthorised use of its patented technology, alleging Rs100 crore in RuPay credit card transactions via UPI QR codes in October 2023 alone.

The Delhi High Court on Monday referred On4Off Trading Pvt. Ltd. and National Payments Corporation and thirteen others to mediation on Monday. The dispute initiated by On4Off seeks to bar others from using the UPI Pay method through credit cards. This will be a pre-litigation mediation.

The single-judge bench of Justice Amit Bansal appointed former Supreme Court Judge AK Sikri as the mediator.

NPCI provides for linking a user’s Rupay credit card to their UPI account to make transactions.

On4Off has asked the high court to stop NPCI and others from using the UPI Pay method through credit cards as immediate relief and a permanent one. The company submitted that it developed this technology in 2017 and filed for a patent on Jan. 16, 2022.

The patent application for the technology was first published on April 8, 2022 and it worked its way through the examination channel of the Indian Patent Office, according to the information given in the petition copy seen by NDTV Profit.

The patent office then came out with issues about the lack of inventive steps in the claim.

However, as per the filing copy, On4Off responded to these objections in Nov. 2022, maintaining that the patented process allows interoperability between credit card payment rails and dynamic UPI QR codes and hence was different from existing technologie.

Details of Alleged Infringement

Back in the year 2022, the Reserve Bank of India proposed to link RuPay credit cards with UPI. The proposal was then backed by a circular on Oct. 4, 2022, and such transactions were finally allowed.

Now it is the case of On4Off, represented by AK & Partners, that NPCI has been using the technology that enables such transactions without any right or authorisation. The national body enabled transactions between RuPay credit cards and UPI QR codes, the petitioner has alleged.

It is further alleged that NPCI has internalised the patented process, using it for RuPay credit card transactions to the exclusion of other card networks. The plaintiff argued that this not only violates its patent rights but also distorts the market by adversely affecting other card manufacturers.

According to On4Off, transactions worth Rs100 crore were facilitated using RuPay credit cards on UPI QR codes in October 2023 alone.

On4Off has also accused third-party application providers and banking institutions of facilitating the patented process without authorisation, thereby gaining illegal benefits.

These third-party application providers include Paytm Payments Bank, Google India Digital Services Private Limited (Google Pay), PhonePe Private Limited, Punjab National Bank (Bharat Interface for Money), ICICI Bank (iMobile Pay), YES Bank (Yes Pay Next), Freecharge (acquired by Axis Bank), Canara Bank (Canara AI1), Amazon.com, Inc. (Amazon Pay), Fino Payments Bank, Gokiwi Private Limited, Samsung India Electronics Pvt Ltd (Samsung Wallet), and Shriram Finance Limited.
Click to expand...
Padha tha yeh news. Enjoy karo hota raheta hai. This is life.

Welcome to life. 😬

Aise bhi kisne kya copy kiya kuch clear nahi hai.

Jada kuch hua toh ON4OFF TRADING ko he kharid lega NPCI. 😬
 
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