On August 8, the Reserve Bank of India (RBI) announced an increase in the Unified Payments Interface (UPI) transaction limit for tax payments from INR 1 Lakh to INR 5 Lakh.
RBI Governor Shaktikanta Das revealed the update during the bimonthly monetary policy committee meeting. He explained, "The transaction limit for UPI transactions is currently set at INR 1 Lakh, with exceptions for certain payment categories. We have decided to raise the limit for tax payments through UPI to INR 5 Lakh per transaction. This change aims to simplify and enhance the payment process for consumers using UPI."
Additionally, the RBI introduced a new feature called delegated payments within UPI. "This new facility will allow a primary user to authorize another individual, known as a secondary user, to make UPI transactions up to a specified limit from the primary user's bank account. The secondary user will not need a separate bank account linked to UPI," Das stated. The RBI anticipates that these changes will expand the reach and usage of digital payments, particularly through UPI.