The National Payments Corporation of India (NPCI) on November 5 announced a cap of 30 percent of total volume of transactions processed in UPI by a Third Party App Provider (TPAP).
“With UPI reaching 200 crore transactions a month and with potential for future growth, it has issued a cap of 30 per cent of total volume of transactions processed in UPI, applicable on all Third Party App Providers (TPAPs). This will be with effect from January 1, 2021,” NPCI's official statement read.
This will help address the risks and protect the UPI ecosystem as it further scales up, the NPCI explained in its statement.
“The existing TPAPs exceeding the specified cap will have a period of two years from January 2021 to comply with the same in a phased manner,” it said.
The move could impact payment apps like apps like Google Pay, PhonePe, and Paytm that are leading the race as UPI is still primarily used for person-to-person fund transfers.
Copyright © e-Eighteen.com Ltd All rights resderved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express writtern permission of moneycontrol.com is prohibited.
