The National Payments Corporation of India (NPCI) on Friday prolonged the deadline for third get together UPI gamers to satisfy its 30 p.c quantity cap in digital fee transactions by two years to end-December 2024.
NPCI runs the Unified Payments Interface (UPI) used for real-time funds between friends or at retailers’ finish whereas making purchases.
In November 2020, NPCI had introduced to restrict a single third get together app to deal with solely 30 p.c of general UPI transaction volumes. The cap was to return in pressure from January 1, 2021.
However, the TPAPs (stay on November 5, 2020) which have been exceeding the cap got a interval of two years to adjust to the norms in a phased method.
“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,” NPCI said in a round.
NPCI additional stated that in view of great potential of digital payments and the necessity for multi-fold penetration from its present state, it’s crucial that different present and new gamers (banks and non-banks) shall scale-up their shopper outreach for the expansion of UPI and obtain general market equilibrium.
TPAPs usually tie-up with banks on the back-end so as to add customers and course of funds for them.
It was reported final month that the NPCI is planning to suggest the Reserve Bank to implement the sooner deadline of December 31, 2023, for limiting the amount cap of gamers to 30 p.c. It is to be famous that presently there isn’t any quantity cap, resulting in Google Pay and PhonePe accounting for round 80 p.c of the whole market share.