RBI increases UPI limit for tax payment to Rs 5 lakh

To accelerate digital payments in the country and facilitate transactions of large amounts, the Reserve Bank of India has fixed the maximum limit from Rs. 1 lakh to Rs. 5 lakh.

Maximum UPI payment limit is Rs. 5 lakh Taxpayers will get relief. Especially those doing high value transactions will get more convenience. RBI has taken this decision to accelerate digital payments and reduce dependence on cash transactions. RBI believes that this will encourage more and more taxpayers to adopt digital payment systems and pay their tax obligations.

Taxpayers will be able to pay large amounts in a single transaction. The maximum limit is reviewed and increased by RBI from time to time for various cases of payment. It facilitates financial transactions especially for capital markets, IPO filing, loan collection, insurance, medical and educational services. Delegated payment system has been introduced in UPI by RBI. In this system a person authorizes payment to another person using his UPI account. The implementation of this system will increase the prevalence of digital payments through UPI.