RBI hikes UPI limit for tax payments to Rs 5 lakh per transaction

In a move aimed at boosting digital payments and facilitating larger transactions, the Reserve Bank of India (RBI) on Thursday increased the upper limit for tax payments through the Unified Payments Interface (UPI) to Rs 5 lakh per transaction from the current Rs 1 lakh limit.

Previously capped at Rs 1 lakh, the enhanced limit is expected to provide convenience to taxpayers, especially for high-value transactions. This decision comes as part of the RBI’s ongoing efforts to promote digital payments and reduce reliance on cash transactions.