NewDelhi: The Reserve Bank of India (RBI) on Thursday said that the UPI limit for tax payment matters has been increased from Rs 1 lakh to Rs 5 lakh per transaction. This will ease the process of tax payers with higher tax liabilities to pay their dues quickly and without any hassle.
RBI Governor Shaktikanta Das, announcing the outcome of the three-day Monetary Policy Committee (MPC) meeting said UPI transitions can be done up to Rs 5 lakh from the existing Rs 1 lakh for tax payment purposes.
“UPI has become the most-preferred mode of payments, due to its seamless features. 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. 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 separately,” Governor Das said.
Bureau Report
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