Google Pay, PhonePe, Paytm and other UPI apps may impose transaction limits soon

This news has been creating waves in the digital payments industry. According to reports, the Reserve Bank of India (RBI) is planning to impose a transaction limit on the Unified Payment Interface (UPI)-based apps.

Soon, transactions made through Google Pay, PhonePe, and other UPI payment apps may be limited. This means that the maximum number of transactions you can make from UPI payment apps will be limited.

According to IANS, the National Payments Corporation of India (NPCI), which manages the UPI digital pipeline, is conversing with the Reserve Bank of India (RBI).

The goal is to have a limit of 30% players by December 31. Right now, there are no restrictions on the number of transactions. Google Pay and PhonePe make up approximately 80% market share according to the report. To avoid concentration risk, NPCI proposed that third-party app providers only allow 30% volume.

A meeting occurred to discuss all aspects in detail, and officials from the finance ministry, Reserve Bank of India (RBI), and National Payments Corporation of India (NPCI) were in attendance. As of now, no definite decision has been made to extend the December 31 deadline because the NPCI is exploring all possibilities.

According to sources, the NPCI is expected to make a decision on UPI market cap implementation by the end of this month.

Starting from January 1, 2021, the maximum number of transactions that a third-party application provider can handle on UPI will be capped at 30% of the volume of transactions processed in the previous three months, as NPCI issues a directive in 2020.

The implementation of UPI market caps will have a direct impact on several digital payment providers. It could potentially lead to fewer transactions and lower revenue opportunities for them.

This news has created a stir among the users of UPI, as they feel that their online payments experience may be impacted due to this move. We will have to wait and see what decision is taken by the RBI in the coming days regarding this matter. Stay tuned for updates!

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