Nationwide Funds Company of India (NPCI), which runs the UPI digital pipeline, is in talks with the Reserve Financial institution on implementation of its proposed December 31 deadline for limiting the amount cap of gamers to 30 per cent.
At current, there isn’t any quantity cap. So, two gamers — Google Pay and PhonePe — account for a market share of about 80 per cent.
NPCI in November 2022 had proposed a 30 per cent quantity cap for third-party app suppliers (TPAP) in a bid to keep away from focus danger.
On this regard, sources mentioned, a gathering was convened to comprehensively have a look at all facets. Moreover NPCI officers, senior officers of the finance ministry and RBI additionally participated on this.
In the meanwhile, NPCI is evaluating all the chances and no remaining choice has been taken to increase the December 31 deadline, the sources mentioned.
NPCI has additionally acquired representations from trade stakeholders to increase the deadline and they’re being examined, they added. In accordance with the sources, NPCI is prone to determine on the difficulty of UPI market cap implementation by this month-end.
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 per cent of the amount of transactions dealt with on UPI, efficient January 1, 2021, which is to be calculated on the premise of the amount of transactions processed throughout the previous three months.
Nevertheless, it gave the prevailing TPAPs, similar to PhonePe and Google Pay, which exceed the specified market cap, two further years, beginning subsequent yr to adjust to the directive.
Earlier this yr, the Reserve Financial institution of India (RBI) got here out with a session paper on expenses in fee methods, which made a case for a tiered cost to be imposed on UPI transactions consistent with Fast Fee Service (IMPS) transactions.
The federal government later issued a press release noting that UPI is a digital public good with immense comfort and productiveness features for the financial system, and there are not any plans to levy any expenses for UPI providers.