UPI or Unified Payments Interface is one of the most used and preferred modes of payment in India. It is secure and extremely convenient to use as it allows merging multiple bank accounts in one app. However, a new development is meant to happen that could put users in dilemma.
According to an IANS report, UPI payment apps like PhonePe, Google Pay, Paytm, etc. may impose a limit on the number of transactions soon. Thus, people may not be able to make numerous payments using the UPI payment apps.
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The NPCI or National Payments Corporation of India which runs the UPI digital pipeline proposed a 30% volume cap for TPAP or third-party app providers in November 2022. It is now discussing with the RBI or Reserve Bank of India on implementing its proposal by 31st December.
A meeting took place to look into everything. RBI and senior officials of the finance ministry participated in the meeting alongside NPCI officials. Any decision is yet to be made on extending the 31st December deadline as NPCI officials are assessing all options.
Also read: UPI Autopay is Finally in India!
They are expected to decide by the end of November on implementing the UPI market cap. With no volume cap currently, PhonePe and Google Play account for approximately 80% of the market.
Way back in 2020, NPCI issued a directive capping the transaction share of a third-party app to process 30% of the volume of transactions on UPI, effective 1st January 2021. The calculation was based on the transaction volume processed in the last three months.