UPI payments can also be made from prepaid cards

RBI has allowed prepaid payment instrument (PPI) or prepaid card holders to make or receive payments through UPI. However, such payments can be made or received only through third party mobile apps. This decision of RBI will provide more convenience to prepaid product holders like gift cards, metro rail cards and digital wallets. RBI said in a notification that it has been decided to enable UPI payments from full-KYC prepaid cards through third party UPI apps. Similarly, PPIs will also be allowed to receive UPI payments. Prepaid cards or PPIs allow the purchase of goods and services equal to their stored value, operation of financial services etc. RBI said that as a payment system provider, the PPI issuer will not be allowed to add customers of any bank or any other PPI issuer.