The market cap deadline for UPI apps has been extended by NPCI for a further two years

Current Context: The National Payments Corporation of India (NPCI) has extended the deadline for implementing the 30% market share cap on Unified Payments Interface (UPI) apps by two years, until December 31, 2026.

• Key Points:
• Market Share Cap: Limits any single UPI app to 30% of the total UPI transaction volume.
• Initial Deadline: Originally set for December 31, 2024.
• Extension: Now extended to December 31, 2026.
• Reason: Allows major players like PhonePe and Google Pay more time to comply, ensuring a smooth transition and continued growth of the UPI ecosystem.
• Implications:
• Temporary Relief: Major UPI apps have more time to reduce their market share gradually.
• Encourages Competition: Smaller UPI apps get a fair chance to grow.
• User Experience: Ensures a seamless experience for UPI users.

Question:

1 What is the market share cap set by NPCI for Unified Payments Interface (UPI) apps?

• A) 20%
• B) 25%
• C) 30%
• D) 35%

Answer: C) NPCI has set a 30% cap on the total UPI transaction volume for any single app to prevent market monopolization and encourage competition among apps.