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New Features For The Unified Payments Interface

New Features For The Unified Payments Interface:

The Reserve Bank of India (RBI) has recently introduced two new features for the Unified Payments Interface (UPI).

  • These new features are poised to make UPI even more versatile and user-friendly, benefiting both consumers and financial institutions.
  • New Features:
    • UPI Access for Prepaid Payment Instruments (PPIs) through Third Party Apps: Previously, UPI payments from Prepaid Payment Instruments (PPIs) could only be made using the web or mobile app provided by the PPI issuer. Now, RBI proposes to permit the use of third-party UPI apps for making UPI payments from PPI wallets.
    • Enabling UPI for Cash Deposit Facility: Traditionally, depositing cash at Cash Deposit Machines (CDMs) primarily required the use of debit cards.
    • Building on the success of card-less cash withdrawal using UPI at ATMs, RBI now proposes to facilitate cash deposits in CDMs using UPI.
    • This measure aims to enhance customer convenience and streamline the currency handling process at banks.
    • Soon, customers will be able to deposit cash at CDMs in banks and ATMs through the UPI app.

Unified Payments Interface (UPI):

  • The Unified Payments Interface (UPI) is a real-time payment system that allows instant transfer of funds between two bank accounts through a mobile platform.
  • It was developed by the National Payments Corporation of India (NPCI) and is regulated by the Reserve Bank of India (RBI).