“The Reserve Bank of India (RBI) has increased the UPI limit for tax payments from Rs 1 lakh to Rs 5 lakh. This means you can now pay larger tax amounts quickly and easily using UPI.”
The Reserve Bank of India (RBI) has announced a significant increase in the maximum amount that can be paid through the Unified Payments Interface (UPI) for tax purposes. Effective immediately, taxpayers can now transfer up to Rs 5 lakh in a single UPI transaction to pay taxes.
This move aims to simplify the tax payment process for individuals and businesses alike. Unlike debit or credit card transactions, which often involve additional charges and security steps, UPI payments are generally free and require only a simple PIN for authentication.
In addition to the UPI limit hike, the RBI has also introduced ‘delegated payments’ through UPI. This new feature will allow users to authorize another person to make UPI payments from their bank account, up to a specified limit. This is expected to further boost the use of digital payments across India.
The RBI Governor expressed confidence that these measures will make it easier for people to pay their taxes and encourage greater adoption of digital payments.
With this latest announcement, the RBI has once again demonstrated its commitment to promoting a digital economy and providing convenient payment options for the public.
