The transaction limits for tax payments through the Unified Payments Interface (UPI) will be enhanced from ₹1 lakh to ₹5 lakh, according to RBI. Further, delegated payments through UPI will be introduced.
Reserve Bank Governor Shaktikanta Das noted that 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 and the like.
“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,” Das said.
He also noted that the Unified Payments Interface (UPI) has a large user base of 424 million individuals. There is, however, potential for further expansion of this base.
Hence, it is proposed to introduce ‘Delegated Payments’ in UPI. Such payments would allow an individual (ie, the primary user) to set a UPI transaction limit for another individual (secondary user) on the primary user’s bank account. This product is expected to add to the reach and usage of digital payments across the country. Detailed instructions will be issued shortly, he said.