National Payments Corporation of India (NPCI), which runs the UPI virtual pipeline, is in talks with the Reserve Bank on implementation of its proposed December 31 closing date for proscribing the extent cap of players to 30 in step with cent.
At gift, there is no volume cap. So, two players — Google Pay and PhonePe — account for a market proportion of about eighty in step with cent.
NPCI in November 2022 had proposed a 30 in keeping with cent extent cap for 0.33-birthday party app companies (TPAP) in a bid to keep away from attention hazard.
In this regard, assets stated, a meeting changed into convened to comprehensively observe all elements. Besides NPCI officials, senior officers of the finance ministry and RBI additionally participated on this.
At the moment, NPCI is evaluating all of the possibilities and no final selection has been taken to increase the December 31 cut-off date, the resources said.
NPCI has additionally received representations from industry stakeholders to extend the cut-off date and they may be being examined, they delivered.
According to the sources, NPCI is probably to decide on the problem of UPI marketplace cap implementation by using this month-stop.
NPCI in 2020 got here up with a directive to cap the proportion of transactions a third-birthday celebration software provider (TPAP) should system at 30 according to cent of the quantity of transactions treated on UPI, powerful January 1, 2021, that is to be calculated on the premise of the quantity of transactions processed in the course of the preceding three months.
However, it gave the existing TPAPs, together with PhonePe and Google Pay, which exceed the favored marketplace cap, two additional years, starting subsequent 12 months to comply with the directive.
Earlier this yr, the Reserve Bank of India (RBI) got here out with a consultation paper on prices in payment systems, which made a case for a tiered fee to be imposed on UPI transactions in keeping with Immediate Payment Service (IMPS) transactions.
The government later issued a declaration noting that UPI is a digital public properly with great comfort and productiveness gains for the financial system, and there are no plans to levy any charges for UPI services.