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No UPI Market Volume Cap For GPay, PhonePe Till Dec 2024, Says NPCI

In November 2022, NPCI caught all the third-party UPI-based payment apps off guard. The authority proposes to impose a 30 percent market volume cap on UPI payments for all third-party UPI payment apps. However, currently, there is no volume limit for any of the payment apps, and out of all Google Pay and PhonePe have an 80 percent market share.

No UPI Market Volume Cap For GPay, PhonePe Till Dec 202

No UPI Market Volume Cap For the Next 2 Years

“Taking into account the present usage and future potential of UPI, and other relevant factors, the timelines for compliance of existing TPAPs who are exceeding the volume cap, is extended by two (2) years i.e. till December 31, 2024, to comply with the volume cap,” read NPCI’s circular.

“The deadline given by NPCI as of December 31, 2022, after which all players would have to have a share of 30 percent or less in monthly UPI volumes,” mentioned Livemint.

“NPCI in 2020 came up with a directive to cap the share of transactions a third-party application provider (TPAP) could process at 30 percent of the volume of transactions handled on UPI, effective January 1, 2021, which is to be calculated on the basis of the volume of transactions processed during the preceding three months,” further reads.

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“Earlier this year, the Reserve Bank of India (RBI) came out with a consultation paper on charges in payment systems, which made a case for a tiered charge to be imposed on UPI transactions in line with Immediate Payment Service (IMPS) transactions. The Central government also said that UPI is convenient and that there were no plans to put any charges on it.”

Rishabh Sharma

Rishabh is an experienced content writer and editor, he is working for Viralbake to cover a diversified range of categories. His articles mainly focus on providing information, being a travel guide, educating others, and also making people aware of technology, after all, he is a technophile. When not writing he can be found gaming, watching movies, and travelling.

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