You can now use funds from your digital wallets, like Paytm or PhonePe, to make payments at stores or online without switching between different applications. The Reserve Bank of India (RBI) has approved this feature, allowing users to pay from their digital wallets through any UPI-enabled app, provided the wallet has completed full KYC (Know Your Customer) verification.
According to an RBI notification dated December 27, 2024, only users with fully verified KYC wallets can make UPI payments. A Prepaid Payment Instrument (PPI) issuer must link its fully verified wallets to the UPI system. When you make a transaction, it will be pre-approved using your existing wallet credentials before it goes through the UPI network.
Additionally, PPI issuers can help users find their fully verified wallets on third-party UPI apps. These apps will allow users to link their wallets to their UPI handles, ensuring that transactions are authenticated using UPI credentials.
This new development simplifies the payment process for users, enabling them to use their digital wallet funds more conveniently across various platforms.
