The government has decided to push back the deadline for capping the share of digital payment transactions by about two years, to December 31, 2024, according to the National Payments Corporation of India (NPCI).
The NPCI stated in late 2020 that payment firms will not be permitted to process more than 30 per cent of total UPI transaction volume beginning January 1.
"Taking into account the present usage and future potential of UPI, and other relevant factors, the timelines for compliance of existing third part app providers who are exceeding the volume cap is extended by two years," NPCI said in a statement.
The move comes as a relief to companies such as Walmart Inc's PhonePe and Alphabet Inc's Google, which are among the country's leading digital money transfer apps.
They are powered by the government-backed United Payments Interface (UPI) framework, which enables peer-to-peer money transfers online via mobile apps.