NPCI extends deadline on UPI cap,relief to Gpay and PPay

Admin January 1, 2025 0 Comments Gpay, NPCI, Phone pay, upi, UPI transaction limit

New Delhi: The National Payment Corporation of India (NPCI) has decided to postpone its plan to implement a 30 percent cap on any individual app’s share of transactions within the Unified Payments Interface (UPI). This recent development comes as a significant relief for PhonePe, backed by Walmart, and Google Pay, which together account for 85 percent of UPI transactions. The cap was intended to prevent major technology companies from dominating the country’s digital payment landscape. The new deadline has now been extended to December 31, 2026.

NPCI, which is supported by over 50 retail banks, has been trying to find a way to enforce these restrictions without disrupting services for UPI users. The organization engaged in extensive discussions with industry leaders throughout 2024 to explore feasible options for implementing the cap, but unfortunately, no viable solutions emerged.For now, UPI users can continue to make payments seamlessly using their preferred UPI services without any interruptions.

This isn’t the first time this deadline has been postponed; the market share limit was initially proposed in 2020 and was later pushed to 2025. The recent decision further delays the control over the increasing influence of global technology companies on India’s digital economy.

Biz Samachar

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