UPI: UPI transaction limit will be fixed, monopoly of Google Pay and Phone Pay will end
The NPCI had in November 2022 proposed a 30 per cent transaction limit for third party app providers (TPAPs) to avoid monopoly risk.
Google Pay and Phone Pay's monopoly on third-party UPI payment services may end next month. The National Payments Corporation of India (NPCI) is in talks with the RBI on a decision to cap the total transaction limit for third party UPI payment services at 30 per cent. NPCI wants to implement this decision from 31 December.
At present, the market share of two companies Google Pay and Phone Pay has increased to about 80 percent due to no transaction limit. The NPCI had in November 2022 proposed a 30 per cent transaction limit for third party app providers (TPAPs) to avoid monopoly risk. Sources in the know of the matter said that a meeting was called to discuss all aspects comprehensively. It was also attended by senior officials of Ministry of Finance and RBI along with officials of NPCI.
Decision may be taken this month NPCI may decide on the issue of implementation of UPI market cap by the end of this month. According to sources, NPCI is currently evaluating all possibilities. No final decision has been taken on extending the December 31 deadline. However, NPCI has received requests from industry stakeholders to extend the deadline and is examining the same.