Tax payment limit through UPI hiked from Rs 1 lakh to Rs 5 lakh
The Reserve Bank of India (RBI) on Thursday announced an increase in the tax payment limit through UPI transactions from Rs 1 lakh to Rs 5 lakh. RBI Governor Shaktikanta Das made the announcement following the monetary policy review, stating that UPI transactions can now be done up to Rs 5 lakh from the current Rs 1 lakh for tax payment purposes. According to Das, the move will ease tax payments by consumers through?UPI.?
Delegated payments in UPI
RBI has also introduced a facility of "Delegated Payments" in?UPI. This would enable an individual (primary user) to allow another individual (secondary user) to make?UPI?transactions up to a limit from the primary user's bank account without the need for the secondary user to have a separate bank account linked to?UPI.?
Also read:?RBI To Enable Users To Deposit Cash At ATMs Using UPI
The Unified Payments Interface (UPI), which was introduced in India in 2016 by the National Payments Corporation of India (NPCI) as an easy-to-use, mobile-based real-time payment system, has since revolutionized how Indians transfer money.
Growth in UPI transactions
According to the Union Finance Ministry, UPI transactions in the first three months of the current fiscal year have grown by over 36 percent to Rs 60 lakh crore.
As per the details of UPI transactions shared by Minister of State for Finance Pankaj Chaudhary in the Lok Sabha, 4,122 crore UPI transactions worth Rs 60 lakh crore took place between April and June in 2024-25.
In the April-June period, 2,762 crore UPI transactions took place, having a value of Rs 44 lakh crore.
Also read:?South American first: Peru implements India¡¯s UPI for instant payments
For the full fiscal year 2023-24, 13,113 crore UPI transactions were made with a value of Rs 200 lakh crore.
In FY23, a total of 8,371 crore UPI transactions took place with a value of Rs 139 lakh crore, while in FY22, there were 4,596 crore transactions involving Rs 84 lakh crore.
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