The National Payments Corporation of India (NPCI) on Friday prolonged the deadline for third celebration UPI gamers to satisfy its 30 % quantity cap in digital cost transactions by two years to end-December 2024.

The determination might present a reduction to 3rd celebration app suppliers (TPAP) like Google Pay and Walmart’s PhonePe which have a majority share in UPI-based transactions.

NPCI runs the Unified Payments Interface (UPI) used for real-time funds between friends or at retailers’ finish whereas making purchases.

In November 2020, NPCI had introduced to restrict a single third celebration app to deal with solely 30 % of total UPI transaction volumes. The cap was to return in drive from January 1, 2021.

However, the TPAPs (stay on November 5, 2020) which have been exceeding the cap got a interval of two years to adjust to the norms in a phased method.

“Taking into account the present usage and future potential of UPI, and other relevant factors, the timelines for compliance of existing TPAPs who are exceeding the volume cap, is extended by two (2) years i.e. till December 31, 2024, to comply with the volume cap,” NPCI said in a round.

NPCI additional mentioned that in view of great potential of digital funds and the necessity for multi-fold penetration from its present state, it’s crucial that different current and new gamers (banks and non-banks) shall scale-up their client outreach for the expansion of UPI and obtain total market equilibrium.

TPAPs usually tie-up with banks on the back-end so as to add customers and course of funds for them. 

It was reported final month that the NPCI is planning to suggest the Reserve Bank to implement the sooner deadline of December 31, 2023, for limiting the quantity cap of gamers to 30 %. It is to be famous that presently there is no such thing as a quantity cap, resulting in Google Pay and PhonePe accounting for round 80 % of the entire market share.