Neobanking startup Jupiter has announced that it has received final approval from the Reserve Bank of India (RBI) to begin issuing prepaid payment instruments (PPIs). These instruments will allow users to conduct Unified Payments Interface (UPI) transactions and transfer up to Rs 2 lakh into their accounts.
The PPIs, which can take various forms such as smart cards, magnetic stripe cards, internet accounts, internet wallets, mobile accounts, mobile wallets, and paper vouchers, offer a versatile method for users to access and manage their prepaid funds.
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“PPI functionality today is almost equal to a bank account and has all the required facilities for a user to operate the account for most types of payments i.e. UPI payments and gift cards. Through PPI, we intend to increase our user base significantly wherein users want to use accounts only for UPI and similar transaction purposes and operate a safe and risk-free account,” said Jitendra Gupta, Founder and CEO, Jupiter, in a statement.
“While we received in-principle approval from RBI last year, it is important for Jupiter to be fully compliant with all regulatory requirements. The final authorisation was received today,” he added.
The company highlighted that PPIs are a powerful tool in supporting RBI’s mission to drive financial inclusion in India and increase the penetration of digital payments. Jupiter also offers real-time spending insights and easy saving tools to help users manage their finances effectively.
Founded by fintech veteran Jitendra Gupta, Jupiter is backed by prominent investors including Matrix Partners, Sequoia Capital, Nubank, Tiger Global, Beenext, and Alteria Capital. In January last year, Jupiter raised Rs 100 crore in venture debt funding from Alteria Capital.
