Soon, Paytm, Phone Pe, and Google Pay won’t allow for unlimited transactions. All you need to know

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It’s possible that UPI payment apps like Google Pay, PhonePe, Paytm, and others will soon limit transactions.

Users of UPI payment apps may soon be unable to make unlimited payments.
The National Payments Corporation of India (NPCI), which runs the UPI digital pipeline, is in talks with the Reserve Bank about putting into action its December 31 deadline to limit player volume to 30%.

There is currently no volume cap, and approximately 80% of the market is occupied by PhonePe and Google Pay.

NPCI proposed a volume cap of 30% for third-party app providers (TPAP) in November 2022 to avoid concentration risk.

A meeting has already been held to thoroughly examine all aspects. This meeting also included senior RBI and finance ministry officials in addition to NPCI officials.
Because the NPCI is looking at all options, no final decision has been made to extend the deadline until December 31.

On the other hand, the NPCI is anticipated to adopt UPI market cap by the end of this month.
A directive from the NPCI limiting the percentage of transactions that a third-party application provider can process to 30% of the volume of transactions handled on UPI was issued in 2020 and will go into effect on January 1, 2021. This percentage will be calculated using the volume of transactions processed over the previous three months.

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