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Source-This post on RBI proposed two new UPI features is based on the article “RBI introduces two new UPI features! From cash deposit to PPI wallet interoperability” published in “The Times of India” on 5th April 2024.
Why in the News?
RBI recently announced two new features for Unified Payments Interface (UPI) users, aiming to enhance ease of transactions and cash deposits.
What are the new UPI features?
1. Cash deposit facility through the use of UPI– Customers will now have the option to deposit cash at cash deposit machines (CDMs) in banks and ATMs using the UPI app. Presently, cash deposits at CDMs typically necessitate the use of a debit card, whether at banks or ATMs.
2. Allowing third-party apps to access UPI for Prepaid Payment Instruments (PPIs)– Currently, UPI payments from Prepaid Payment Instruments (PPIs) require using the web or mobile app provided by the PPI issuer. It’s now suggested to allow using third-party UPI apps for making UPI payments from PPI wallets.
Other measures announced by RBI
1. Permit FPIs to invest in Sovereign Green Bonds (SGrBs)– To encourage broader participation of non-residents in Sovereign Green Bonds (SGrBs), the RBI has decided to authorize eligible foreign investors in the International Financial Services Centre to invest in these bonds.
Currently, foreign portfolio investors (FPIs) registered with SEBI can invest in Sovereign Green Bonds (SGrBs) through various investment routes available for FPIs in government securities.
2. Mobile app for Retail Direct scheme– The RBI will introduce a mobile app for its Retail Direct scheme, launched in November 2021. This scheme allows individual investors to hold gilt accounts with the RBI and invest in government securities.
Note– Gilt Account means an account opened and maintained for holding Government securities.
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