Transaction limit for tax payments via UPI hiked from Rs 1 lakh to Rs 5 lakh

The Reserve Bank of India (RBI) on Thursday announced to increase the transaction limit for tax payment through Unified Payments Interface (UPI) from Rs 1 lakh to Rs 5 lakh per transaction.

The move will further ease tax payments by consumers through UPI, which has become the most preferred mode of digital payments.

“As direct and indirect tax payments are common, regular and high value, it has been decided to enhance the limit for tax payments through UPI from Rs 1 lakh to Rs 5 lakh per transaction,” RBI Governor Shaktikanta Das said after announcing the monetary policy.