Limit for tax payment through UPI increases from one lakh to five lakh

UPI payment limit: The Reserve Bank of India (RBI) on Thursday announced to increase the limit of tax payment through UPI (Unified Payments Interface). Giving information about the decision taken in the three-day meeting of the Monetary Policy Committee (MPC) which started on Tuesday, RBI Governor Shaktikanta Das said that UPI has become the most preferred method of payment with its convenient features.

Currently, the limit of tax payment for UPI is Rs 1 lakh. He said, “At present the transaction limit for UPI is Rs 1 lakh, except for some special category of payments, which have higher transaction limits. Now it has been decided to increase the limit of tax payment through UPI from Rs 1 lakh to Rs 5 lakh per transaction. This will make it even easier for consumers to pay through UPI.”

It is noteworthy that in December 2023, RBI had increased the transaction limit for UPI payments to hospitals and educational institutions to Rs 5 lakh. Earlier this limit was Rs 1 lakh.