UPI Payment / RBI's big decision, the limit for tax payment through UPI has been increased from Rs 1 lakh to Rs 5 lakh

UPI Payment: The Reserve Bank of India (RBI) on Thursday released the monetary policy for August 2024. In this, the repo rate was retained at 6.5 percent for the 9th consecutive time. Meanwhile, RBI Governor Shaktikanta Das announced a big decision regarding UPI payment. The central bank has proposed to increase the limit of tax payment made through UPI (UPI Tax Payment Limit) from Rs 1 lakh to Rs 5 lakh. After all, who will benefit from this and how?

If you have even the slightest confusion that RBI has increased the limit of daily payment through UPI, then let us tell you that this has not happened at all. Only the limit of tax payment made through UPI has been increased.

Benefit of increasing UPI Tax Payment Limit

Taxpayers who have high tax liability. They can complete the transaction of tax payment quickly. For this, the limit of tax payment through UPI has been increased. Till now, if the liability of a taxpayer is Rs 1.5 lakh, then he cannot take full advantage of tax payment through UPI. Rather, he has to use other net banking solutions like NEFT or RTGS.

By increasing this limit of RBI, it will become easier for people to fulfill their tax liability on time. Not only this, the tax collection of the government will also increase. Another benefit of this will be that the transaction cost of the people will be reduced.

Money will also be saved at the time of tax payment

Taxpayers will get another benefit of RBI increasing the limit of tax payment through UPI from 1 lakh to 5 lakh. If taxpayers currently make tax payment using net banking tools like NEFT or RTGS or make payment through credit and debit cards. Then they have to pay transaction charges. On the contrary, transaction charges are not levied at the time of payment through UPI. Therefore, they will save some money even while paying tax up to Rs 5 lakh.

UPI Payment Limit is different according to the category

Both the government and RBI are aware that among all the payment options, UPI is the most preferred mode among the people. Therefore, different limits have been fixed for different categories of payments through UPI. According to the National Payment Corporation of India (NPCI), which maintains UPI, the limit for making normal payments through UPI is only Rs 1 lakh.

In December 2023, RBI increased the limit of payment through UPI to Rs 5 lakh for expenses made in hospitals and educational institutes. People started getting the benefit of this while paying bills in the hospital or paying fees for education.

Similarly, in December 2021, the limit of UPI was increased to Rs 5 lakh for investing in retail direct scheme or IPO. Whereas according to NPCI, the limit of UPI for capital market, collections, insurance, getting money from abroad etc. is Rs 2 lakh.

Add-on feature like credit card will be available on UPI

According to a news of ET, another announcement related to UPI is about delegated payments. Now you will be able to create a delegated account under UPI for a member of your family. That member will be able to make UPI payments from your account up to a fixed limit. This facility will be somewhat like the add-on facility of a credit card. In this, you allow someone else to use your credit line.