RBI MPC Meeting 2024: UPI Limit For Tax Payments Increased To Rs 5 Lakh
This move is expected to further ease transactions for consumers through UPI, as it has become the most preferred mode of payment.
The Reserve Bank of India increased the transaction limit of tax payments through Unified Payments Interface to Rs 5 lakh from Rs 1 lakh per transaction, Governor Shaktikanta Das said during the monetary policy announcement on Thursday.
This move is expected to further ease transactions for consumers through UPI, as it has become the most preferred mode of payment.
“As direct and indirect tax payments are common, regular, and of high value, it has been decided to enhance the limit for tax payments through UPI from Rs 1 lakh to Rs 5 lakh per transaction,” Das said during the monetary policy announcement.
In a separate regulatory announcement for payment systems, the RBI proposed to introduce delegated payments in UPI. This would allow an individual primary user to set a UPI transaction limit for another individual secondary user on the primary user’s bank account, according to the statement on developmental and regulatory policies.
As UPI has a large user base of 42.4 crore individuals, the delegated payments system is expected to add to the reach and usage of digital payments across India. The central bank will issue the necessary and detailed instructions on both norms separately.
The RBI's Monetary Policy Committee also kept the repo rate unchanged at 6.50% and retained its stance on withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth.
Consequently, the standing deposit facility rate also remained unchanged at 6.25% and the marginal standing facility rate at 6.75%.
