The NPCI is scheduled to reach a judgement on UPI market cap implementation before the end...
Digital Desk: Google Pay, PhonePe and other UPI payment apps may eventually impose a transaction restriction. This means that you will be limited to a set number of transactions via UPI payment apps.
According to a Press statement, the National Payments Corporation of India (NPCI), which operates the UPI digital pipeline, is in talks with the Reserve Bank of India (RBI). By the projected deadline of December 31, the organisation hopes to limit player volume to 30%.
There is currently no limit on the number of transactions. According to the survey, Google Pay and PhonePe account for over 80% of the market. To reduce concentration risk, NPCI proposed a 30% volume cap for third-party app suppliers.
A meeting has already been held to carefully inspect all issues. This meeting was attended by senior officials from the finance ministry and the RBI, in addition to NPCI officials. The NPCI is now considering all options before making a final decision to extend the December 31 deadline.
However, the NPCI is anticipated to make a judgement on the adoption of UPI market caps by the end of this month.
In 2020, NPCI issued a directive capping the share of transactions that a third-party application provider might execute on UPI at 30%, beginning January 1, 2021, to be computed based on the number of transactions processed in the previous three months.
Continue Reading
