⚠️India 🇮🇳: Reintroduction of UPI Market Share Limits Postponed by 2 Years

⚠️India 🇮🇳: Reintroduction of UPI Market Share Limits Postponed by 2 Years

The initial limit, introduced in November 2020, mandates that payment platforms cannot process more than 30% of total UPI transaction volumes.
(UPI, or Unified Payments Interface, is a cornerstone of India's financial ecosystem).

➡️ The regulator has decided to reassess the limit. The Reserve Bank of India (RBI) announced that the updated quota will be calculated based on the total UPI transaction volume over the past 3 months.

➡️ This deferment provides much-needed relief to digital payment platforms such as Google Pay and PhonePe, which currently exceed the threshold. UPI continues to be the most widely used payment method in the country: in November 2024, PhonePe handled 47.8% of UPI transactions, while Google Pay accounted for 37%, both far exceeding the prescribed limit.

➡️ Additionally, the RBI recently authorized prepaid payment instruments (PPI) to process UPI transactions through third-party mobile applications, further diversifying the digital payment ecosystem.
This decision aims to ensure market sustainability.

#news #India #payments

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