National Payments Corporation of India (NPCI) is in talks with the Reserve Bank of India (RBI) on implementation of its proposed deadline of December 31, 2022, for limiting the volume cap of unified payments interface (UPI) players to 30 per cent. At present, there is no volume cap and two players – Google Pay and PhonePe – account for a market share of around 80 per cent. NPCI had proposed a volume cap of 30 per cent for third-party app providers in a bid to avoid concentration risk.
As per sources, a meeting was held in this regard to comprehensively look at all aspects. NPCI officials and senior officials of the Ministry of Finance and RBI participated in the meeting. NPCI is evaluating all the possibilities and no final decision has been taken to extend the December 31, 2022, deadline. NPCI has also received representations from industry stakeholders to extend the deadline and they are being examined.
NPCI is likely to decide on the issue of UPI market cap implementation by the end of November 2022.
