Delhi, November 21: UPI payment apps like Google Pay, PhonePe and Paytm may soon impose limit on transaction. Yes, you read it right. Soon you may not be able to make unlimited payments via Google Pay, PhonePe, Paytm and other UPI payment apps. It is because the National Payments Corporation of India (NPCI), which runs the UPI digital pipeline, is in talks with the Reserve Bank on implementation of its proposed December 31 deadline for limiting the volume cap of players to 30 per cent.
As of now, there’s no cap on volume and Google Pay and PhonePe hold the market share of about 80 per cent. NPCI had proposed a 30 per cent volume cap for third-party app providers (TPAP) in a bid to avoid concentration risk in November 2022. NPCI Launches Open Source BHIM App Licensing Model to Reulate Entities Participating in UPI Ecosystem
A meeting was 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 in the meeting. Google Pay Not Authorised by RBI As UPI Payment App? Government Debunks Fake Claim Going Viral on Social Media
No final decision has been taken to extend the December 31 deadline as the NPCI is evaluating all the possibilities, reported livemint. NPCI is likely to decide on the issue of UPI market cap implementation by this month-end.
While Paytm, the third ranking payment app wants market capping to be implemented as per the timeline (December 2022), market leaders Walmart-owned PhonePe as well as Google Pay had independently approached UPI regulator National Payments Corporation of India (NPCI) for an extension of the deadline by at least three more years.
The Central government had recently said that UPI is convenient and that there were no plans to put any charges on it.
(The above story first appeared on Morning Tidings on Nov 21, 2022 01:05 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website morningtidings.com).
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