New Delhi. National Payments Corporation of India (NPCI) has given relief to companies like PhonePe and GooglePay which operate UPI apps. NPCI has extended the deadline for implementing the market limit of 30% on third party UPI by 2 years i.e. till December 31, 2026. This is the third time that NPCI has extended the deadline.
In a circular issued on Tuesday, NPCI said, “Taking into consideration various factors, the timeline for compliance of volume limits for existing Third Party App Providers (TPAPs) has been extended by two years i.e. till December 2026. These are TPAPs whose market is more than the limit.”
NPCI had initially proposed a 30 per cent cap on the volume of transactions that can be processed by UPI apps in November 2020. For this, existing entities were given time to comply with the volume limit in 2 years. Currently, major TPAPs like Google Pay and PhonePe have more than 80 per cent share in UPI transactions.
According to NPCI, the 30 per cent cap will be calculated based on the total volume of transactions processed continuously in UPI during the last three months. To achieve 30 per cent market share, players who have more than 30 per cent market share in UPI transactions will have to stop adding new customers.
What is UPI?
Let us tell you that UPI is a real time payment system, which can transfer money to a bank account instantly through a mobile app. Through UPI, you can link one bank account to many 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 to transfer money even if you have only one information out of scanner, mobile number, UPI ID.
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