The Nationwide Funds Company of India (NPCI) on Friday prolonged the deadline for third celebration UPI gamers to fulfill its 30 % quantity cap in digital fee transactions by two years to end-December 2024.
NPCI runs the Unified Funds 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 celebration app to deal with solely 30 % of general UPI transaction volumes. The cap was to come back in drive from January 1, 2021.
Nonetheless, the TPAPs (reside 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 consideration the current utilization and future potential of UPI, and different related elements, the timelines for compliance of current TPAPs who’re exceeding the quantity cap, is prolonged by two (2) years i.e. until December 31, 2024, to adjust to the quantity 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 current 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 Financial institution to implement the sooner deadline of December 31, 2023, for limiting the quantity cap of gamers to 30 %. It’s to be famous that at present there isn’t any quantity cap, resulting in Google Pay and PhonePe accounting for round 80 % of the overall market share.