RBI monetary policy update: UPI tax payment limit increased to Rs 5 lakh from Rs 1 lakh
By Team Asianet Newsable | First Published Aug 8, 2024, 11:34 AM ISTThis decision followed the RBI's enhancement of the transaction limit for UPI payments to hospitals and educational institutions to Rs 5 lakh in December 2023, which was previously set at Rs 1 lakh.
In the latest monetary policy statement, Reserve Bank of India (RBI) Governor Shaktikanta Das on Thursday (August 8) announced an enhancement in the limit of tax payments through the Unified Payments Interface (UPI). The transaction limit for tax payments via UPI has been increased from Rs 1 lakh to Rs 5 lakh per transaction. This move is aimed at easing payments for consumers and enhancing the convenience of UPI transactions.
"Currently, the transaction limit for UPI is ₹1 lakh except for certain categories of payments which have a higher transaction limit. It has now been decided to enhance the limit for tax payments through UPI from Rs 1 lakh to Rs 5 lakh per transaction. It will further ease payments for consumers through UPI," Governor Das said.
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This decision followed the RBI's enhancement of the transaction limit for UPI payments to hospitals and educational institutions to Rs 5 lakh in December 2023, which was previously set at Rs 1 lakh.
Governor Das also introduced a new facility of delegated payments through UPI. "It is proposed to introduce a facility of delegated payments in the UPI. This would enable an individual, i.e., a primary user, to allow another individual, namely a secondary user, to make UPI transactions up to a limit set by the primary user from the primary user's bank account without the need for the secondary user to have a separate bank account linked to UPI. This would further deepen the reach and usage of digital payments, in particular UPI," he explained.
In addition to these UPI enhancements, the RBI has kept the repo rate unchanged at 6.5 percent. The central bank also retained its real GDP growth forecast for FY25 at 7.2 percent, with Q1 slightly adjusted to 7.1 percent from the earlier projection of 7.3 percent.
RBI keeps repo rate unchanged at 6.5 pc for ninth straight time
The GDP growth forecasts for Q2, Q3, and Q4 remain at 7.2 percent, 7.3 percent, and 7.2 percent, respectively. The GDP growth forecast for FY26 is also maintained at 7.2 percent.
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