On Thursday, the Reserve Bank of India (RBI) announced an increase in the Unified Payments Interface (UPI) tax payment limit, raising it from the current Rs 1 lakh to Rs 5 lakh per transaction. This change was revealed during the announcement of the third bi-monthly monetary policy for the current financial year by RBI Governor Shaktikanta Das.
Governor Das highlighted that the UPI transaction limit has been primarily set at Rs 1 lakh, with certain exceptions for specific categories of payments that have higher limits. With the new policy, the limit for tax payments via UPI has been raised to Rs 5 lakh per transaction. This move is expected to simplify and facilitate tax payments for consumers using UPI.
"Currently, the transaction limit for UPI is Rs 1 lakh, except for certain categories of payments which have higher transaction limits. It has now been decided to enhance the limit for tax payments through UPI from Rs 1 lakh to Rs 5 lakh per transaction. This will further ease tax payments by consumers through UPI," Das stated.
In addition to this announcement, Das proposed the creation of a public repository for digital lending apps to monitor and control unauthorized operators within the market. This repository aims to increase transparency and protect consumers from potentially fraudulent activities.
Moreover, Governor Das expressed concern over the increasing disbursements of top-up home loans. He urged lenders to implement remedial measures to address and manage the risks associated with this trend. The RBI's focus on these issues reflects its commitment to maintaining financial stability and protecting consumer interests in the evolving digital and financial landscape.