UPI Payment Apps : UPI payment is now getting restricted. Discussions are underway with the Reserve Bank of India to limit UPI payments, similar to bank transactions.
UPI Payment Apps: If you are also using UPI Payment App, there is a very important news for you. Now preparations are underway for restrictions on UPI Payment. Discussions are underway with the Reserve Bank of India to limit UPI payments, similar to bank transactions. Currently, in the digital age, all work is done online. Everything from shopping for household goods to bank transactions is done online. Most of the citizens are currently dependent on UPI payments. UPI payments are used for many transactions big and small in daily life. This has made transactions convenient. But UPI payments are likely to be restricted soon.
Coming New Rules for UPI payments will be limited
Unified Payments Interface i.e. UPI is a real time payment system. Due to this, money can be sent to each other through the mobile app in the bank account. With this, any user can link a bank account with multiple UPI apps and transact. Meanwhile, preparations are underway to set transaction limits for apps that offer UPI payment services. The National Payments Corporation of India (NPCI) is set to limit the volume cap of third party app providers (TPAP) in the country to 30 percent. Discussions are going on with Reserve Bank of India (RBI – Reserve Bank of India) for this. Volume Cap is a tax exemption for certain types of private companies.
The new rules come into effect by December 31, 2022
The transaction limit for third party UPI payments may be fixed soon, the central government has initiated a move for this. According to media reports, the National Payments Corporation of India (NPCI) is in discussions with the RBI on a decision to limit the total transaction limit of third party UPI payments to 30 percent. If the decision goes through, app payments like Google Pay and Phone Pay will be limited. The new rules are expected to come into effect by December 31, 2022. Currently there is no transaction limit on UPI payments
Currently there is no limit on UPI payments, so usage of Google Pay and Phone Pay has increased to 80 percent. In November 2022, NPCI has asked to bring in rules to fix a 30 percent transaction limit to prevent the monopoly problem of third-party UPI payment apps. However, this rule is still under discussion with the Reserve Bank of India. Officials of NPCI, Ministry of Finance and Reserve Bank of India (RBI) have participated in these discussions. A decision in this regard is likely to be taken soon.