CURRENT AFFAIRS

Detailed explanation-1: -NPCI in November 2022 had proposed a 30% volume cap for third-party app providers (TPAP) in a bid to avoid concentration risk. NPCI is likely to decide on the issue of UPI market cap implementation by this month-end.

Detailed explanation-2: -The National Payments Corporation of India (NPCI) is holding talks with the Reserve Bank of India on the implementation of its proposed 31 December deadline for limiting the volume cap of players.

Detailed explanation-3: -“Taking into account the present usage and future potential of UPI, and other relevant factors, the timelines for compliance of existing TPAPs (third party app providers) who are exceeding the volume cap, is extended by two years i.e. till December 31, 2024 to comply with the volume cap,” it said in a circular.

Detailed explanation-4: -The guidelines, introduced in November 2020, mandated that the volume of UPI transactions initiated through a payment service provider do not exceed 30 per cent of the overall volume of UPI transactions during the preceding three months.

Detailed explanation-5: -However, fewer people are aware about the limit on the amount you can transfer using UPI apps and the number of transactions you can make in a day. As per the National Payments Corporation of India (NPCI), an individual can transfer up to Rs 1 lakh via UPI in a single day.