Tax payment limit via UPI increased to Rs 5 lakh from Rs 1 lakh earlier
This will further ease tax payments by consumers through UPI, noted RBI.
On the sidelines of the MPC announcement today, the RBI has increased the limit for tax payment via the UPI or unified payments interface to Rs 5 lakh.
"Currently, the transaction limit for UPI is ₹1 lakh except for certain category of payments which have higher transaction limits. It has now been decided to enhance the limit for tax payments through UPI from ₹1 lakh to ₹5 lakh per transaction. This will further ease tax payments by consumers through UPI," read the Governor's statement.
Also, the RBI has proposed introduction of a facility called "Delegated Payments" in UPI. This would enable an individual (primary user) to allow another individual (secondary user) to make UPI transactions up to a limit from the primary user’s bank account without the need for the secondary user to have a separate bank account linked to UPI. This will further deepen the reach and usage of digital payments.
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