Google Pay, PhonePe, Paytm and other UPI payment apps may soon impose a limit on the transactions. This means that you will only be able to make a certain amount of transactions from UPI payment apps. As per a report by IANS, the National Payments Corporation of India (NPCI), which operates the UPI digital pipeline, is currently in discussion with the Reserve Bank of India (RBI). The organisation aims to limit player volume to 30% by the proposed deadline of December 31.
As of now, there is no limit on the number of transactions. As per the report, Google Pay and PhonePe account for around 80% market share. NPCI proposed a 30% volume cap for third-party app providers to avoid concentration risk.
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.
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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% 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.
(with inputs from IANS)
