New UPI Change: More Ways to Use Wallet Money!
We all love using apps like Paytm, PhonePe, and Amazon Pay for our daily payments. Whether it’s buying groceries or paying bills, they make life easier.
But there’s been a problem: you can only use the money in these wallets on their apps. So if you have money in your PhonePe wallet, you can’t use it on Paytm or other UPI apps.
Now, the RBI is changing the rules. Soon, you’ll be able to link your wallet with any UPI app, giving you more flexibility with your money.
What are Prepaid Payment Instruments?
According to an ET report, prepaid payment instruments (PPIs) are like digital wallets or cards where you can store money to make payments. You add money to them and then use them to pay for things online or through UPI. They’re different from your bank account. When you buy something using a PPI, the money comes from the balance you’ve added to it.
Up until now, you could only use these wallets for UPI payments within the app that made them, following RBI rules.
Here’s How the RBI’s New Rule Benefits You:
RBI Governor Shaktikanta Das announced on April 5th that they’re considering a new idea. They want to let people link their digital wallets (PPIs) to other UPI apps. This means if you have money in a digital wallet like Paytm, you could use it with any UPI app, just like you do with your bank account. This change would make things easier for people who use digital wallets.
Unlocking Inter-App Usage with New RBI Regulations
According to Shivaji Thapliyal of Yes Securities India Ltd., customers can now utilize any UPI app to access their wallets, even if different companies provide them.
With these fresh RBI regulations, PPI wallet users are no longer restricted to using their wallet only through the issuer’s app, explains Shravan Shetty from Primus Partners. This change enables customers to seamlessly utilize their wallet balance across various UPI-enabled apps, expanding its utility beyond the confines of the wallet’s native platform.
Let’s say you have funds in your PhonePe Wallet, you can now utilize them through any third-party UPI app, not just the PhonePe app. This enhancement allows users to access their funds stored in wallets like PhonePe and Amazon Pay through any third-party UPI application.
Regarding closed wallets like those offered by BigBasket, Country Delight, Milkbasket, and Ola Money, the funds loaded into these wallets can only be utilized to buy goods and services from the respective company’s app and cannot be used elsewhere.
New Rules Make Wallets More Convenient and Secure
The recent RBI rule changes for PPIs give customers more options, flexibility, and security. According to Shetty, this means you can use your wallet balance at more places, making digital payments easier without needing different apps. This is especially helpful in rural areas where many small banks don’t offer UPI.
Sarvjeet Singh Virk says this will help with issues like not being able to use UPI with some wallet providers, letting more people manage their money digitally.
Looking forward, Shetty suggests thinking of wallets like a “debit card” for online shopping.
Easy UPI Payments: Using Wallet Money
Wallets are great for small UPI payments, like Rs 10 or Rs 100. Now, users can use their wallet funds through other apps for UPI payments. This is especially handy for small purchases and makes things safer because you don’t have to share your bank details, says Goyal.
Shetty adds that the RBI’s decision to allow UPI access for wallet users through other apps gives customers more ways to pay, making things more convenient and widely accepted.
Must Read: Essential UPI Facts
