Govt To Impose Transaction Limit on Daily UPI Payments

According to ANI, the National Payments Corporation of India (NPCI) will likely implement its planned December 31 deadline to impose volume caps on third-party UPI app providers.

This means, people in India will no longer be able to make unlimited payments using PhonePe, Google Pay, and other UPI applications.

The NPCI took this action following a recent report that UPI platforms PhonePe and Google Pay are currently dominating the market with about 80% share.

To prevent monopolies, NPCI has proposed a 30 percent volume cap of UPI apps in November 2022, which the organization wants the RBI to approve.

Several reports suggest that industry stakeholders requested the NCPI to extend the deadline, which is currently being reviewed. Furthermore, the issue of the UPI market limit implementation is likely to be resolved by the end of December.