2 min readMumbaiAug 9, 2024 05:01 AM IST
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.
According to Rahul Jain, Chief Financial Officer, NTT DATA Payment Services India, the enhancement of the UPI limit for tax payments will strengthen the tax-collection system, reduce the cost of tax collection, and make tax payments more convenient for taxpayers.
“This also means more benefits to taxpayers in terms of seamless, transparent, secured, and ease of making high-value transactions,” he said.
UPI, which enables fast interbank transactions, has seen a surge in momentum in the last few years.
The latest data from the National Payments Corporation of India (NPCI) showed that the number of UPI transactions rose 45 per cent year-on-year to exceed 14 billion, reaching 14.43 billion in July. Total number of UPI transactions stood at 13.88 billion in June this year.
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The value of transactions grew 35 per cent y-o-y to Rs 20.64 lakh crore in July.
