Central bank raises UPI tax payment limit to Rs 5L per transaction from Rs 1L

Chandigarh, August 8

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In order to facilitate larger transactions through digital platform, the Reserve Bank of India today increased the upper limit for tax payments through the Unified Payments Interface (UPI) to Rs 5 lakh per transaction from Rs 1 lakh.

Currently, the transaction limit for UPI is Rs 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 Rs 1 lakh to Rs 5 lakh per transaction. This will further ease tax payments by consumers through UPI,” said RBI in a statement.

With the increased limit, taxpayers can now make larger tax payments in a single transaction, reducing the need for multiple payments.

In addition to the UPI limit hike, the RBI is also exploring the introduction of ‘delegated payments’ through UPI. This feature will allow individuals to authorise another person to make payments using former’s UPI account.

“Delegated payment 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,” it stated. — TNS