Unified Payments Interface or UPI has such deep roots in India that some people won’t survive shopping without it. Because it’s convenient to use an instant payment method that eradicates the need of carrying hard cash. Moreover, now there is no need to say ‘keep the change’ in different shops, you can send the exact amount of money by typing digits on your UPI app. However, with the recent development, there is likely going to be a cap on UPI transactions.
UPI Payments Might Have Transaction Limit Soon
As per the IANS report, Google Pay, PhonePe, Paytm, and more payment apps are likely to cap the number of UPI transaction limits for every user. This means no unlimited UPI payments anymore. The National Payments Corporation of India (NPCI), which is an umbrella organisation for retail payments in India, may be discussing with the Reserve Bank of India to limit the UPI volume for each UPI-based payment company by 30 per cent, by December 31.
Currently, there is no transaction limit for the users of Google Pay, PhonePe, and Paytm, which have acquired 80 per cent UPI market in India. But soon at the end of this month, NPCI can make a final decision to cap the UPI transactions to limit the volume. The third-party apps are to be capped to avoid the concentration risk.
“A meeting has already taken place to comprehensively look at all aspects. Besides NPCI officials, senior officials of the finance ministry and RBI also participated in this meeting,” mentioned zeebiz.
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“In 2020, NPCI issued a directive capping the share of transactions that a third-party application provider could process at 30 per cent of the volume of transactions handled on UPI, effective January 1, 2021, to be calculated based on the volume of transactions processed in the previous three months”, further said.
