Transaction limit for tax payments through UPI increased to ₹ 5 lakh

Business: The Reserve Bank of India (RBI) on Thursday announced raising the limit for tax payments through Unified Payments Interface (UPI) from Rs 1 lakh to Rs 5 lakh per transaction. The move will further ease tax payments by consumers through UPI, which has become the most preferred mode of digital payments. “Since direct and indirect tax payments are common, regular and high value, it has been decided to raise the limit for tax payments through UPI from Rs 1 lakh to Rs 5 lakh per transaction,” RBI Governor Shaktikanta Das said after the monetary policy announcement. According to Rahul Jain, chief financial officer of NTT Data Payment Services India, raising the UPI limit for tax payments will strengthen the tax-collection system, reduce the cost of tax collection and make tax payments more convenient for taxpayers. “It also means greater benefits to taxpayers in terms of seamless, transparent, secure and ease of making high-value transactions,” he said.