The National Payments Corporation of India (NPCI) is in talks with the Reserve Bank of India (RBI) on a decision to cap the total transaction limit for UPI payments service run by Third Party App Providers (TPAP) to 30 per cent. NPCI has set a deadline of December 31 to implement this decision.
Proposal to fix 30 percent transaction limit for TPAP
At present there is no transaction limit (Volume Cap). In such a situation, the market share of two companies Google Pay and PhonePe has increased to about 80 percent. In November 2022, NPCI had proposed to fix 30 per cent transaction limit for TPAP to avoid monopoly risk.
In this regard, sources said that a meeting was called to comprehensively consider all aspects. According to the news agency PTI, apart from the officials of NPCI, senior officials of Finance Ministry and RBI also participated in this meeting.
Decision on implementation of UPI Market Cap possible by the end of November
Sources said that at present NPCI is evaluating all possibilities and no final decision has been taken on extending the deadline of December 31. He said that NPCI has received requests from the stakeholders of the industry to extend the deadline and they are being examined. According to sources, NPCI may decide on the matter of implementing UPI Market Cap by the end of this month.
What is UPI
Let us tell you that UPI is a real time payment system, which can transfer money to bank account instantly through mobile app. Through UPI, you can link one bank account with multiple UPI apps. At the same time, many bank accounts can be operated through one UPI app. The special thing is that UPI gives you the facility of money transfer even if you have only one of these information like scanner, mobile number, UPI ID.
Now RuPay Credit Card can be linked with BHIM App Recently Rupay Credit Card on UPI facility has been started. Now you will be able to pay with a credit card by scanning the UPI QR Code at the neighborhood grocery store. However, through RuPay Credit Card, you can make payment only to Merchant UPI QR code. At present you can link RuPay credit card of some banks on BHIM app.
