New Delhi: The Reserve Bank of India has allowed for a hike in the tax payment limit via UPI to Rs 5 lakh from Rs 1 lakh earlier, improving the ease of payments via UPI and enhancing the size of transactions allowed in the homegrown payments platform.
Having revised the UPi cap on payments for different heads earlier, the RBI raised the one-time tax payment cap to RS 5 lakh from Rs 1 lakh earlier. To be sure, these tax payouts are usually seen in the higher income group, which indicates RBI’s attempts to make UPI a high transaction value offering, since currently, UPI is more popular for small ticket transactions.
UPI delegated payments
In another boost to the ease of payments, RBI introduced the delegated payments option on UPI to expand the existing user base from the current count of 424 million individuals, said RBI governor Das. This utility allows UPI user to cap the UPI transaction limit for a secondary user of their account. This will help to maintain the security of digital payments while expanding the UPI user base.
The daily UPI transaction differs between banks and lies in the range of Rs 25,000- lakh. Earlier, RBI had hiked the cap on UPI transactions to Rs 5 lakh for educational institutions as well as hospital-related payments.
RBI MPC decision
The RBI’s monetary policy committee decided to keep the repo rate unchanged for the 9th straight cycle at 6.50 per cent, owing to expectations of stubborn food inflation for the time being. However, two MPC members, namely Ashima Goyal and Jayanth R. Varma, voted to slash the repo rate by 25 bps, while changing the stance to neutral from withdrawal of accommodation.
The RBI warned banks against using risky instruments for borrowing and directed them to focus on fundraising via retail savings. The RBI governor flagged risks from unsecured retail loans and tops in home loan as well as gold loan categories.
RBI governor Shaktikanta Das announced a hike in UPI tax payment limit during his MPC announcement on Thursday, August 8, 2024. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
