UPI balances witnessed growth outlook with a 30% volume cap for Third-Party App Providers
National Payments Corporation of India (NPCI) said that with UPI reaching 2 Bn transactions a month and with potential for future growth, it has issued a cap of 30% of total volume of transactions processed in UPI, applicable on all Third Party App Providers (TPAPs). This will be with effect from January 1, 2021. It will help to address the risks and protect the UPI ecosystem as it further scales up.
The cap of 30% will be calculated basis the total volume of transactions processed in UPI during the preceding three months (on a rolling basis).
The existing TPAPs exceeding the specified cap, will have a period of two years from January 2021, to comply with the same in a phased manner.