UPI payment apps such as Google Pay, PhonePe, and Paytm may impose transaction limits soon.
According to reports, the National Payments Corporation of India (NPCI) is in talks with the Reserve Bank of India on the implementation of its proposed December 31, 2022, deadline for limiting the volume cap.
There is no volume cap at present. Reports reveal that the NPCI in November proposed a 30 per cent volume cap for third-party app providers (TPAP).
Also read: How to activate PhonePe UPI using Aadhaar
NPCI is likely to decide on the issue of UPI market cap implementation by this month-end, according to a PTI report. The NPCI received representations from industry stakeholders to extend the deadline.
The authority in 2020 came up with a directive to cap the share of transactions a third-party application provider (TPAP) could process at 30 per cent 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.