In a new SOP, NPCI has directed that any UPI service provider found to be in breach of the 30% market share cap will have to restrict the onboarding of new users and find ways to dial the number back.
HIGHLIGHTS
- Since January 31, UPI players have been directed to keep a market share of less than 30%.
- Anyone exceeding the threshold will be given two warnings before an ultimatum to stop onboarding.
- The non-compliant UPI players will provide an undertaking to the NPCI explaining their efforts towards it.
The use of Unified Payments Interface or the UPI network in India has been on a rapid rise since the past year. A new circular by the National Payments Corporation of India (NPCI) mentions that this use equated to 2 billion monthly transactions in November 2020. The circular has been released for establishing a way to cap the market share of third-party UPI apps.
Through the circular, NPCI has established a three-tier mechanism to keep a check on any monopoly in the UPI network. Back in November last year, the apex body had capped this market share at 30 per cent, a regulation that has been in effect since January 2021.
News Source: India Today
