RBI Wallet to UPI: Even today, crores of people in the country use the wallet feature on digital payments apps. This includes everything from PhonePe to Amazon Pay. Mobile wallet is different from UPI. This is a prepaid payment instrument (PPI), in which money has to be deposited in advance. Now there has been a change in the rules related to this.
When the Reserve Bank of India (RBI) banned Paytm Payments Bank, the people using Paytm Wallet faced the most problems. People may soon get a solution to this, because RBI is working on a system where people can link their wallet with the UPI app like a bank account. Let us understand the full details…
Even today, crores of people in the country use the wallet feature on digital payments apps. This includes everything from PhonePe to Amazon Pay. Mobile wallet is different from UPI. This is a prepaid payment instrument (PPI), in which money has to be deposited in advance. Now there has been a change in the rules related to this.
How will the linking of UPI and wallet work?
Currently, you can use the wallet of any company’s app to transfer that money to the wallet of the same company. To transfer this money, you can use third party UPI and this money goes into the wallet of the other person only.
This means that you cannot transfer the money kept in the wallet of one app to the wallet of any other app. Now RBI has found a solution to this. RBI proposes to link your mobile wallet to third party UPI applications (such as PhonePe, Paytm). In this way your wallet will also start working like an account.
Reserve Bank of India Governor Shaktikanta Das, while announcing the monetary policy in April, had said that now more flexibility will be provided to PPI holders. PPI will be allowed to be linked to third party UPI app, so that UPI payment can be done through wallet like bank account.
The common man will benefit like this
According to the news of ET, the common man is going to benefit in a big way from this new gift of RBI. After this, customers will now be able to make payment by accessing any wallet from any UPI app. This means that if you have a PhonePe wallet and have money in it, then if you make payment through Paytm UPI, you will be able to use the money in the PhonePe wallet.
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