The Payments Corporation of Nations (NPCI) of India has set the new date for limiting the share of digital payment transactions.
In late 2020, the NPCI said that payment firms would not be allowed to process more than 30 percent of total transaction volume on UPI from January 1. However, NPCI took a new decision and extended this date to 2024.
India Takes New Decision Regarding Digital Payment
The National Payments Corporation of India (NPCI) said on Friday; India announced that it has decided to extend the deadline for limiting the share of digital payments transactions by nearly two years, until 31 December 2024.
This move has given a breath of fresh air to companies such as Walmart Inc’s PhonePe and Alphabet Inc’s Google, which are among the country’s leading digital money transfer applications. The apps are powered by the government-backed Unified Payments Interface (UPI) framework, which facilitates peer-to-peer money transfers online via mobile apps.
In the statement made by the NPCI, it was stated that:
“Taking into account the current use, future potential, and other relevant factors of UPI, compliance periods for existing third-party application providers that exceed the volume limit have been extended by two years”
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