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RBI made a big announcement on August 08. They said that the UPI limit for tax payment will be increased. This limit is still Rs 1 lakh. It will be increased to Rs 5 lakh. RBI Governor Shaktikanta Das presented the monetary policy on August 08, Thursday at 10 am. In this, he announced to increase the UPI limit for tax payment.
Cheaper payments through UPI
Taxpayers will benefit greatly from RBI's announcement. Experts say that the attraction of using UPI for payment has increased. Keeping this in mind, the central bank has increased the UPI limit for tax payment (tax payment through UPI). Experts say that there will be no additional charge on UPI payment. Therefore, using UPI for payment is cheaper.
Efforts to make UPI payment attractive
There is an additional charge for paying tax through UPI reverse debit card or credit card. The central bank is constantly trying to make UPI payments attractive. In December last year, the central bank had increased the UPI limit for certain types of payments. This also included payments made to hospitals and educational institutions. The UPI limit for payments to these organizations was increased to Rs 5 lakh.
UPI limits for different transactions
There is still a limit of Rs 1 lakh per transaction for general payments through UPI. For certain types of transactions like capital markets, collections, insurance, foreign inward remittances, the UPI payment limit is Rs 2 lakh. The UPI payment limit for IPO application is Rs 5 lakh per transaction.