The National Payments Corporation India (NPCI) issued a circular on 2nd December, 2022 on the implementation of its ‘Guidelines on volume cap for Third Party App Providers (TPAPs) in UPI’.
It may be recalled that the NPCI had issued these Guidelines on 5th November 2022.
The present Circular extends the timeline for compliance by existing TPAPs who exceed the volume cap. The extension is for a period of two years, i.e. up to 31st December 2024. Thereafter the TPAPs will have to comply with the volume cap.
The notification also strongly encourages Banks and Non-Banks to boost their consumer outreach and promote the growth of UPI to achieve market equilibrium. In doing so, the NPCI recognises the substantial potential of digital paymets and the need for multi-fold penetration from its current state.