UPI: NPCI Extends App Volume Cap Deadline to 2026
Why in the news
NPCI pushed back the date for enforcing the cap on how much transaction volume any UPI app may handle, giving the market two more years until the end of 2026.
Key facts
- Cap deadline: moved by two years to December 31, 2026.
- UPI: one mobile app for multiple bank accounts, with fund routing and merchant payments; an upgraded form of IMPS (round-the-clock fund transfer).
- Launch: by NPCI in 2016 with 21 member banks.
- Top apps: PhonePe, Paytm, Google Pay, Amazon Pay, BHIM.
- Link-up: India’s UPI to be connected to Singapore’s PayNow.
- Milestone: monthly value above USD 100 billion first time in October 2021.
| Network | Countries |
|---|---|
| UPI in use | UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, Mauritius |
| RuPay in use | Bhutan, Singapore, UAE, Sri Lanka, Nepal, Mauritius, Maldives |
About NPCI
- Umbrella body for retail payments and settlement systems, promoted by RBI and Indian Banks’ Association under the Payment and Settlement Systems Act, 2007.
- A not-for-profit company formed under Section 25 of the Companies Act, now Section 8 of the Companies Act 2013.
- Operates NACH, IMPS, AePS, BBPS and RuPay among others.
Growth drivers
- Digital transactions grew strongly in the pandemic year 2020-21 and several countries showed interest in the model.
- Support from merchant payments, Jan Dhan Yojana, Personal Data Protection Bill, MSME growth, millennials and smartphone spread.
Concerns
- Cybercrime risk, for instance the Cerberus malware.
- Fraud types: fraudulent claims, chargebacks, fake buyer accounts, promotion abuse, account takeover, identity theft, card detail theft, triangulation frauds.
Way forward
A well-designed public-private partnership policy and policy-led digital empowerment can improve infrastructure, access, literacy and responsible digital conduct.
Exam angle
- Full forms: NPCI, IMPS, NACH, AePS, BBPS.
- Linked system: Singapore’s PayNow.
- Year of UPI launch: 2016.