The Reserve Bank of India has decided to enhance the limit for tax payments via UPI from ₹1 lakh to ₹5 lakh per transaction, Governor Shaktikanta Das announced on Thursday.
“As direct and indirect tax payments are common, regular and high value, it has been decided to enhance the limit for tax payments through UPI from ₹1 lakh to ₹5 lakh per transaction. Necessary instructions will be issued,” Mr. Das reasoned.
The RBI is also provisioning to introduce ‘Delegated Payments’ through UPI. This will enable a secondary user, like a spouse to make payments via UPI by using the bank account of the primarily user.
Delegated Payments would enable a UPI user to set a payment limit for another user on their bank account. “This product is expected to add to the reach of digital payments,” and would add to the 424 million individual user base, Mr. Das added.
“UPI has become the most-preferred mode of payments. Currently, the transaction limit for UPI is capped at ₹1 lakh. Based on the various use-cases, the Reserve Bank has periodically reviewed and enhanced the limits for a few categories like capital markets, IPO subscriptions, loan collections, insurance, medical and educational services etc,” he said.
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“The Unified Payments Interface (UPI) has a very large user base. There is, however, potential for expansion,” Mr. Das said.
Published - August 08, 2024 11:56 am IST
