Market cap deadline for UPI apps has been extended by NPCI until 2026.
The NPCI has given third-party Unified Payments Interface (UPI) apps an additional two years until December 31, 2026, to adopt a 30% volume cap.
The NPCI has delayed the deadline for the third time.
According to NPCI, the deadline for compliance for current third-party application providers (TPAPs) that exceed the volume cap has been extended by two years, or until December 2026.
In November 2020, the National Payments Corporation of India (NPCI) first proposed capping the number of transactions that UPI apps could handle at 30%.
Major TPAPs like PhonePe and Google Pay currently account for 80% of UPI transactions.
The 30% cap will be determined on a rolling basis by taking the total number of UPI transactions performed over the previous three months.
With immediate effect, NPCI has removed the cap on onboarding UPI users for WhatsApp Pay, a third-party app provider.
WhatsApp Pay can now extend UPI services to its entire user base in India.
The NPCI has removed the 100 million user cap that existed.
