Limits on transactions might soon be implemented by UPI payment apps like Google Pay, PhonePe, and Paytm. You did read that correctly.
Google Pay, PhonePe, Paytm, and other UPI payment apps may soon restrict how much money you may send and receive. It’s because the Reserve Bank and the National Payments Corporation of India (NPCI), which manages the UPI digital pipeline, are negotiating the execution of a suggested deadline of December 31 for capping the volume of players at 30%.
There is currently no volume cap, and Google Pay and PhonePe account for around 80% of the market. To reduce the risk of concentration, NPCI had recommended a 30% volume cap for third-party app providers (TPAP) in November 2022.
A conference to thoroughly examine all factors has already been held. Senior representatives from the finance ministry and the RBI joined the NPCI officials in this meeting.
The NPCI Is weighing all of the options, so no decision has been made in regards to extending the deadline of December 31. By the end of this month, NPCI will probably make a decision regarding the implementation of UPI market caps.
Market leaders Google Pay and PhonePe, both owned by Walmart, have individually requested an extension of the deadline by at least three more years, while Paytm, the third-ranked payment app, wants market capping to be enforced by the deadline (December 2022).
Market leaders Google Pay and PhonePe, both owned by Walmart, have individually requested an extension of the deadline by at least three more years, while Paytm, the third-ranked payment app, wants market capping to be enforced by the deadline (December 2022).
UPI is practical, and the central government recently stated that there were no intentions to charge for it.
