UPI payment apps may soon impose transaction limit: NPCI

The National Payments Corporation of India (NPCI), which operates the UPI digital pipeline, is in discussions with the Reserve Bank about implementing its proposed December 31 deadline for limiting player volume to 30 per cent

Digital UPI payment apps like Google Pay, PhonePe, Paytm, and others may soon impose a limit on the transaction.

Soon users may not be able to make unlimited payments via UPI payment apps.

The National Payments Corporation of India (NPCI), which operates the UPI digital pipeline, is in discussions with the Reserve Bank about implementing its proposed December 31 deadline for limiting player volume to 30 per cent.

There is currently no volume cap, and Google Pay and PhonePe account for roughly 80 per cent of the market.

In order to avoid concentration risk in November 2022, NPCI proposed a 30 per cent volume cap for third-party app providers (TPAP).

A meeting has already taken place to comprehensively look at all aspects. Besides NPCI officials, senior officials of the finance ministry and RBI also participated in this meeting.

Currently, no final decision has been made to extend the December 31 deadline because the NPCI is evaluating all options.

However, the NPCI is expected to make a decision on UPI market cap implementation by the end of this month.

In 2020, NPCI issued a directive capping the share of transactions that a third-party application provider could process at 30 per cent of the volume of transactions handled on UPI, effective January 1, 2021, to be calculated based on the volume of transactions processed in the previous three months.

Also read: Telegram testing pay-to-view posts on iOS, avoiding Apple payment system

This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever

"Exciting news! Mid-day is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest news!" Click here!