The Reserve Bank of India (RBI) has announced an increase in UPI limit per transaction. Until now, users could only transfer up to Rs. 1 lakh per day or per transaction via UPI. As per RBI’s new direction, UPI payments up to Rs. 5 lakh are now allowed for tax payment purposes. As UPI is the most used method of digital payment in India, the move by RBI will aid taxpayers to timely increase tax liability. It is also worth noting that UPI payments do not usually attract any additional charges.
It is worth noting that this is not the first time RBI has increased the UPI limit. Late last year, the central bank hiked the UPI limit to Rs. 5 lakh for certain payments including educational institutions and hospitals.
Also read: Get cash from ATMs using UPI apps: Step-by-step guide and how UPI-ATM works
“Currently, the transaction limit for UPI is Rs. 1 lakh except for certain categories of payments which have higher transaction limits. It has now been decided to enhance the limit for tax payments through UPI from Rs. 1 lakh to Rs. 5 lakh per transaction. This will further ease tax payments by consumers through UPI,” RBI Governor Shaktikanta Das said.
Specific categories with higher UPI transaction limit
As per NPCI, UPI transaction limit for normal usage is still up to Rs. 1 Lakh per transaction. For a few specific categories of transaction in UPI like Capital Markets, Collections, Insurance, Foreign Inward Remittances the transaction limit is up to Rs. 2 lakh and for Initial Public Offering (IPO) and Retail Direct Scheme the limit is up to Rs. 5 lakh per transaction.
Also read: UPI Lite: What is it and how is it different? Check features, limits and more
Apart from this, RBI Governor Shaktikanta Das also proposed a public repository of digital lending apps to check unauthorised players.
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