Nationwide Funds Company of India (NPCI), which runs the UPI digital pipeline, is in talks with the Reserve Financial institution on implementation of its proposed December 31 deadline for limiting the quantity cap of gamers to 30 per cent.
At current, there isn’t any quantity cap. So, two gamers — Google Pay and PhonePe — account for a market share of about 80 per cent.
NPCI in November 2022 had proposed a 30 per cent quantity cap for third-party app suppliers (TPAP) in a bid to keep away from focus threat.
On this regard, sources mentioned, a gathering was convened to comprehensively take a look at all elements. Apart from NPCI officers, senior officers of the finance ministry and RBI additionally participated on this.
In the mean time, NPCI is evaluating all the chances and no closing determination has been taken to increase the December 31 deadline, the sources mentioned.
NPCI has additionally obtained representations from trade stakeholders to increase the deadline and they’re being examined, they added.
In response to the sources, NPCI is prone to determine on the difficulty of UPI market cap implementation by this month-end.
NPCI in 2020 got here up with a directive to cap the share of transactions a third-party software supplier (TPAP) may course of at 30 per cent of the quantity of transactions dealt with on UPI, efficient January 1, 2021, which is to be calculated on the idea of the quantity of transactions processed through the previous three months.
Nonetheless, it gave the present TPAPs, akin to PhonePe and Google Pay, which exceed the specified market cap, two further years, beginning subsequent yr to adjust to the directive.
Earlier this yr, the Reserve Financial institution of India (RBI) got here out with a session paper on expenses in fee methods, which made a case for a tiered cost to be imposed on UPI transactions consistent with Instant Cost Service (IMPS) transactions.
The federal government later issued an announcement noting that UPI is a digital public good with immense comfort and productiveness positive aspects for the economic system, and there are not any plans to levy any expenses for UPI companies.
(Solely the headline and film of this report could have been reworked by the Enterprise Commonplace employees; the remainder of the content material is auto-generated from a syndicated feed.)