After the recent meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), the RBI Governor revealed the new monetary policy. The repo rate remained unchanged, as anticipated.
However, RBI Governor Shaktikanta Das also announced significant changes to the UPI payment system. Here’s what you need to know about these updates:
Increased Tax Payment Limit Through UPI
The RBI has raised the limit for tax payments made through UPI from Rs 1 lakh to Rs 5 lakh per transaction.
This change means you can now make tax payments up to Rs 5 lakh through UPI, making large payments easier and more efficient.
Governor’s Statement on UPI Decision
Governor Shaktikanta Das explained that while the tax payment limit through UPI was previously capped at Rs 1 lakh for most transactions, there was a demand for an increase.
The RBI MPC has responded to this demand by allowing a higher limit.
Enhanced Delegated Payments Feature
The RBI has also introduced improvements to delegated payments via UPI. Now, primary users will find it easier to make UPI transactions on behalf of secondary users without
requiring a separate bank account for them. This enhancement simplifies the process for managing payments.
UPI’s Growing Popularity
UPI has become an integral part of daily transactions for millions of Indians. Whether through QR codes, phone numbers, or UPI IDs, people can easily send and receive money.
The increased tax payment limit is expected to benefit many users by streamlining their financial transactions.
