The National Payments Corporation of India (NPCI) released the “Guidelines on volume cap for Third Party App Providers (TPAP)” (Circular). As per the Circular, effective January 1, 2021, TPAPs are required to ensure that the total volume of transactions initiated through their respective Unified Payment Interface (UPI) applications do not exceed 30% of the total volume of transactions in the country during the preceding three months.
Further, existing TPAPs that cross the 30% cap have been given two years to comply with this new directive. On March 25, 2021, NPCI also released the Standard Operating Procedure (SOP), which provides the guidelines for TPAPs to fulfil the norms for staying within the stipulated volume cap.
Please click here to read the full article by Probir Roy Chowdhury and Kavya Katherine Thayil, published in The Economic Times.
Probir specializes in Corporate Commercial, Venture/Private Equity and Information Technology/FinTech. He has been involved in corporate transactions focused on the high technology industry including cross border Mergers & Acquisitions.