UPI payment apps like Google Pay, PhonePe, and Paytm may impose transaction limits soon.
According to reports, the National Payments Corporation of India (NPCI) is in talks with the Reserve Bank of India regarding the implementation of a proposed deadline of December 31, 2022 to limit the maximum volume.
There is no size cap at the moment. Reports reveal that in November NPCI proposed a 30 percent volume cap for Third Party Application Providers (TPAP).
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The NPCI is likely to make a decision on the issue of implementing market capitalization UPI by the end of the month, according to the PTI report. NPCI has received endorsements from industry stakeholders to extend the deadline.
The authority in 2020 reached a directive to limit the quota of transactions that a Third Party Application Provider (TPAP) can process to 30 percent of the volume of transactions processed on a UPI, from January 1, 2021, which will be calculated on the basis of the volume of transactions processed during the previous three months.
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