The National Payments Corporation of India (NPCI) has taken an important decision for UPI apps. Giving relief to companies like PhonePe, GooglePay, NPCI has extended the time period for implementing the 30 percent market limit on these apps by two years. Now this limit will remain effective till December 31, 2026.

Deadline extended for the third time

This is the third time NPCI has extended this deadline for UPI apps. Earlier, NPCI had proposed a 30 percent limit in November 2020 and given two years. Now it has been extended for another two years. NPCI said that this decision has been taken "keeping various things in mind".

New rule for TPAP

According to NPCI, third party apps (TPAP) with a market share of more than 30 percent will not be allowed to add new customers. This step is for those companies which were not following this limit till now. Currently, apps like Google Pay and PhonePe account for more than 80 percent of UPI transactions.

WhatsApp Pay got a big relief

NPCI has made another important change. Now the limit on adding UPI users for WhatsApp Pay has been removed. Earlier, WhatsApp Pay was allowed to provide UPI service only to 10 crore users. Now WhatsApp Pay will be able to provide UPI services to its users all over India.

The growing influence of UPI

NPCI operates the Unified Payment Interface (UPI), which is used for all types of digital payments in India. These services allow real-time payments to shopkeepers and consumers. UPI has become the most popular payment method in India, accounting for millions of transactions every day.

It is worth noting that these decisions of NPCI are a sign of further strengthening of the UPI system. These changes will increase competition among UPI service providers and consumers will get better services. Also, this step will strengthen new players like WhatsApp Pay.