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NPCI’s big decision: any one UPI app will dominate, know what is the new rule
Big News for PhonePe, Google Pay Users: If you also use UPI apps like PhonePe, Google Pay, or Paytm for small and big payment of your day, then this news is very important for you. The National Payment Corporation of India (NPCI), an organization that oversees digital payment in India, has made a major rule regarding the UPI system, which may affect your way of paying in future.
What is this new rule?
NPCI has made a rule that any one UPI app (eg PhonePe or Google Pay) Total UPI transactions More than 30% Can not capture the part. This is called ‘Market Share Cap’.
Why was this rule made?
Its purpose is to prevent any one company from having a monopoly on the UPI market. Think, what will happen if most of the people of the country depend on any one app and that app stops for a few hours? Payments will stop across the country. To reduce this risk and give other UPI apps a chance to increase this 30% limit.
What will be the effect on PhonePe and Google Pay?
Currently, both PhonePe and Google Pay are far ahead of this 30% limit, which has the highest share in the market.
So will your payment stop from today?
no way. There is no need to panic you. Nothing is changing for you right now. You will be able to use these apps as before.
NPCI to implement this rule to these companies Time is given till 31 December 2024. This means that these companies (PhonePe and Google Pay) will have to bring their share below 30% till this date. How they will do this will be their strategy. They may stop adding new customers or put some limits on transactions, but all this will happen in the future.
At the moment, everything is normal for you as a user. This step has been taken to make the UPI system even more strong, safe and reliable in the long term.