According to ANI, the National Payments Corporation of India (NPCI) may impose its planned December 31 deadline to limit the volume cap for third-party UPI app providers (TPAP). This means that customers in India would no longer be able to make unlimited transactions with PhonePe, Google Pay, and other UPI apps.
A Detail about UPI apps may impose a transaction restriction in the near future
UPI platforms such as PhonePe and Google Pay currently hold an estimated 80% market share. To avoid any UPI app monopoly, NPCI has proposed a 30% volume cap in November 2022, which the organization hopes the RBI would approve. There is currently no transaction limit on any UPI-based application such as Paytm, PhonePe, or Google Pay.
According to reports, a conference was held to thoroughly comprehend the current status quo in the aftermath of the proposal. According to reports, prominent officials from the NPCI, finance ministry, and RBI were present at this meeting. However, no decision has yet been made.
According to some accounts, industry stakeholders requested that the NCPI extend the deadline, which is currently being investigated. Furthermore, the issue of UPI market limit implementation is likely to be resolved by the end of December.
Meanwhile, the National Payments Corporation of India (NPCI) recently announced that it has abolished the switching charge for all RuPay issuing and acquiring member banks for point of sale (PoS) and e-commerce transactions until the end of the year.
The switching cost is waived from November 11 to December 31, 2016, according to a statement issued by NPCI on Monday. For PoS and e-commerce transactions, the charges were Rs0.60 to the card issuing bank (issuer) and Rs0.30 to the card accepting bank (acquirer).
“The goal is to assist banks in activating existing RuPay cards, issuing new cards to un-carded consumers, and expanding acceptance sites,” NPCI managing director and CEO A P Hota stated.
The country has over 14 lakh PoS terminals, and the number of acceptance points is rising. With the correct push, 755 million debit card holders may generate approximately 50 million card transactions each day, up from the current level of only 5 million transactions, according to NPCI.