Enforcing! No Unlimited UPI Transactions Anymore on Payments App


Transaction limits may be imposed by Google Pay, PhonePe, and other UPI payment apps

UPI payment apps such as Google Pay, PhonePe, Paytm, and others may soon impose a transaction limit. Users may soon be unable to make unlimited payments through UPI payment apps. The National Payments Corporation of India (NPCI), which operates the UPI digital pipeline, is in talks with the Reserve Bank about implementing the Reserve Bank’s proposed December 31 deadline for limiting player volume to 30%.

There is no volume cap at the moment, and Google Pay and PhonePe account for roughly 80% of the market. To avoid concentration risk in November 2022, NPCI proposed a volume cap of 30% for third-party app providers. A meeting has already been held to thoroughly examine all aspects. This meeting was attended by senior officials from the finance ministry and the RBI, in addition to NPCI officials. The NPCI is currently evaluating all options before making a final decision to extend the December 31 deadline. However, the NPCI is expected to make a decision on the implementation 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 could process at 30% of the volume of transactions handled on UPI, to be calculated based on the volume of transactions processed in the previous three months, effective January 1, 2021. Some industry stakeholders reportedly want NCPI to extend the deadline, which is currently being investigated. According to reports, the issue of UPI market cap implementation will be resolved by the end of this month.

In 2020, NCPI presented the same order to cap the volume of transactions at 30%; however, the desired market cap was later exceeded, and the UPI apps were given at least two more years to comply with the directive. There is no information available at this time as to whether the deadline can be extended. According to reports, PhonePe has already requested a three-year extension of the December 31 deadline, and some other players have asked for a five-year extension. We should have more information by the end of November.

Leave a Reply

Your email address will not be published. Required fields are marked *

Elon Musk Asks Staff to Recommend Potential Candidates for Twitter

Elon Musk Asks Staff to Recommend Potential Candidates for Twitter

Elon Musk, the Twitter CEO has completed its layoffs and is ready to hire again

What Good Things Can We Expect from Apple this New Year?

What Good Things Can We Expect from Apple this New Year?

What Apple fans can look forward to in 2023 and fans who waited should be

You May Also Like