UPI Payment Apps May Impose Transaction Limit
IANS 21 November 2022
Unified payment interface (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 of India (RBI) about implementing itsproposed 1st December deadline for limiting player volume to 30%.
 
There is currently no volume cap, and Google Pay and PhonePe account for roughly 80% of the market.
 
In order to avoid concentration risk in November 2022, NPCI proposed a 30% 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 31st December 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% of the volume of transactions handled on UPI, effective 1 January 2021, to be calculated based on the volume of transactions processed in the previous three months.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Comments
gbrhyd
3 months ago
It shows that there is no proper plan at either RBI or at central government. To reduce corruption, RBI should eliminate 500,2000 notes and encourage on line transactions.
groupstonath
3 months ago
This would be disastrous for our economy! It is just to prevent cash transactions that UPI was encouraged but now the Govt is thinking of applying conditions which would affect the situation! In fact the Govt. ought to subsidize the UPI and encourage more of this than making people to revert to Cash! How sad!
m.muralidharan
3 months ago
On the one side Govt wants Digital India and cash LESS society and on the other, a well oiled #UPI system is being planned to be destroyed by various controls. Eventually, CASH will be the KING, AGAIN.
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