NPCI extends deadline for compliance with UPI volume cap by 2 years

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Subscribe to enjoy similar stories. Mumbai: In a move that will bring relief to apps providing UPI services, the National Payments Corporation of India (NPCI) has extended by two years the deadline for third-party application providers (TPAPs) to comply with limits on UPI transaction volumes processed by them. The retail payments regulator also eased restrictions on WhatsApp Pay and allowed it to extend its services to all its users.

“Considering various factors, the timeline for compliance of existing TPAPs who are exceeding the volume cap, is extended by two years till December 31, 2026," NPCI said in a circular issued on Tuesday. NPCI had earlier said that no UPI (unified payments interface) app could account for more than 30% of UPI transaction volumes, but the deadline for for TPAPs to comply with this limit has now been extended twice already. “We welcome the extension of the market cap of UPI apps by NPCI as we strongly believe that the Indian people themselves will choose from dozens of new UPI apps available," said Vishwas Patel, joint managing director of Infibeam Avenues and chairman of industry body Payment Council of India (PCI).

Patel added that Paytm was getting back to capture its lost market share, and Navi, Cred, Bhim, WhatsApp Pay and several other new apps are growing strongly. Also read | How NBBL's Bharat Connect aims to streamline B2B payments for small businesses “Banks are also getting their UPI app strategy in place. I strongly believe that in the next two years, the market itself will resolve this market cap issue.