There may soon be a transaction limit on Google Pay, PhonePe, Paytm, and other UPI payment apps. As a result, you will only be able to conduct a limited number of transactions using UPI payment apps.
The National Payments Corporation of India (NPCI), which manages the UPI digital pipeline, is currently in conversation with the Reserve Bank of India (RBI), according to an IANS report. By the proposed deadline of December 31, the organization intends to limit player volume to 30%.
The number of transactions is currently unlimited. According to the report, Google Pay and PhonePe hold approximately 80% of the market share. To reduce concentration risk, the NPCI suggested setting a volume cap for third-party app providers at 30%.
A meeting has already been held to thoroughly examine all aspects. This meeting also included senior RBI and finance ministry officials in addition to NPCI officials. Because the NPCI is looking at all options, no final decision has been made to extend the deadline until December 31.
On the other hand, the NPCI is anticipated to adopt UPI market cap by the end of this month.
A directive from the NPCI was issued in 2020, limiting a third-party application provider’s ability to process 30 percent of UPI transactions by January 1, 2021, based on the volume of transactions processed in the previous three months.
