PhonePe, Google Pay and other UPI apps get new SOP from NCPI to maintain a 30% market share cap – News 24-7 Live News 24-7 Live
PhonePe, Google Pay and other UPI apps get new SOP from NCPI to maintain a 30% market share cap

PhonePe, Google Pay and other UPI apps get new SOP from NCPI to maintain a 30% market share cap

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

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