The National Payments Corporation of India (NPCI), which manages the UPI digital pipeline, is in discussions with the Reserve Bank about implementing its proposed December 31 deadline for limiting player volume to 30%.
There is no volume limit, and Google Pay and PhonePe control roughly 80% of the market.
In order to avoid concentration risk in November 2022, NPCI proposed a volume cap of 30% for third-party app providers (TPAP).
A meeting has already been held to thoroughly examine all aspects. This meeting was attended by senior officials from the finance ministry and the RBI, in addition to NPCI officials.
The NPCI has not made a final decision to extend the December 31 deadline because it is still evaluating all options. NPCI is expected to make a decision on UPI market cap implementation by the end of the month.
While Paytm, the third-ranked payment app, wants market capping to be implemented by the deadline (December 2022), market leaders Walmart-owned PhonePe and Google Pay have independently approached UPI regulator National Payments Corporation of India (NPCI) for a three-year extension.
The Central Government recently stated that UPI is useful and that there are no plans to charge for it.