Nationwide Funds Company of India (NPCI), which runs the UPI digital pipeline, has on Friday prolonged deadline for limiting quantity cap to 30% for TPAPs in UPI by two years until December 31, 2024.

TPAPs are third-party app suppliers. At current, there isn’t any quantity cap.

This could come as a reduction for Unified Funds Interface (UPI) gamers like Google Pay and PhonePe, which account for a market share of about 80%.

NPCI, in November 2022, had proposed a 30% quantity cap for TPAPs in a bid to keep away from focus threat.

NPCI in 2020 got here up with a directive to cap the share of transactions a third-party software supplier (TPAP) may course of at 30% of the quantity of transactions dealt with on UPI, efficient January 1, 2021, which is to be calculated on the premise of the quantity of transactions processed throughout the previous three months.

Nonetheless, it gave the present TPAPs, reminiscent of PhonePe and Google Pay, which exceed the specified market cap, two further years, beginning subsequent 12 months to adjust to the directive.

Earlier this 12 months, the Reserve Financial institution of India (RBI) got here out with a session paper on expenses in fee techniques, which made a case for a tiered cost to be imposed on UPI transactions according to Instant Fee Service (IMPS) transactions.

The federal government later issued an announcement noting that UPI is a digital public good with immense comfort and productiveness positive aspects for the economic system, and there aren’t any plans to levy any expenses for UPI providers.

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