Now you will not have to pay any extra fee on tax payment, RBI will increase UPI limit

UPI Limit for Tax Payment: RBI has made another big announcement by keeping the repo rate unchanged at the end of the bi-monthly monetary policy meeting. UPI limit for tax payment will be increased. Currently this limit is Rs. Which has been increased to Rs 1 lakh. 5 lakh work will be done. RBI Governor Shaktikanta Das has announced to increase the UPI limit for tax payment.

Making payments cheaper through UPI

Taxpayers will benefit greatly from this announcement of RBI. Experts say that the use of UPI for payment has increased. By increasing the UPI limit for tax payment by RBI, the additional charges levied on other means will be eliminated. Additional charges are levied on UPI payment when tax is paid through debit card and credit card. Whereas there is no charge in UPI. Therefore, RBI has proposed to increase the limit to Rs. 5 lakh.

Efforts to make UPI attractive

RBI is taking steps to make UPI more attractive by accelerating digital payments. In December last year, RBI had increased the UPI limit for certain types of payments. This included payments to hospitals and educational institutions.

UPI limits for different transactions

Hospitals and educational institutions can make payments up to Rs. 5 lakh through UPI. Per transaction limit for general payments is Rs. 1 lakh. For special types of transactions like capital market, collections, insurance, foreign inward remittances, the limit is Rs. 2 lakh. Per transaction limit for IPO applications is Rs. 5 lakh.