RBI made a big announcement on August 8. It has said that the UPI limit for tax payment will be increased. Currently this limit is Rs 1 lakh. It will be increased to Rs 5 lakh. RBI Governor Shaktikanta Das presented the monetary policy on August 8, Thursday at 10 am. In this, he 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 people’s interest in using UPI for payment has increased. Keeping this in mind, the central bank has increased the limit of UPI for tax payment. Experts say that there is no additional charge on payment through UPI. Therefore, using UPI for payment is cheaper.
Trying to make UPI payment attractive
Unlike UPI, there is an additional charge for paying tax through debit card or credit card. The central bank is constantly trying to make UPI payment attractive. In December last year, the central bank had increased the limit of UPI for certain types of payments. These included payments made to hospitals and educational institutions. The UPI limit for payments to these institutions was increased to Rs 5 lakh.
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UPI limits for different transactions
Currently, the limit for general payments through UPI is Rs 1 lakh per transaction. For certain types of transactions such as capital markets, collections, insurance, foreign inward remittance, the limit for payment through UPI is Rs 2 lakh. For applying for IPO, the limit for payment through UPI is Rs 5 lakh per transaction.
