Comprehensive Guide to Understanding Prepaid Payment Instruments (PPIs)

What is PPI Interoperability?

Interoperability is tech compatibility that enables devices, software and products to connect in a coordinated way.

In PPI interoperability, one payment system operates in conjunction and coordination with another payment system(s).

With a vision to enable PPIs to become an integral part of the larger financial services ecosystem, RBI issued its

much-anticipated directions on interoperability for PPIs on 16 October 2018. Under this, many PPI issuers, tied up

with the National Payments Corporation of India for issuing Interoperable RuPay PPI cards or creating interoperable

wallets on UPI rails. PPI interoperability through UPI has been a crucial step for speeding the growth of merchant

transactions in rural areas and further deepening financial inclusion. It will further help in boosting the universal

acceptance of wallets across all UPI QR codes and devices.