RBI has made a big announcement regarding UPI payment.
The Reserve Bank of India (RBI) on Thursday released the monetary policy for August 2024. In this regard, the repo rate was kept for the ninth consecutive time at the same level i.e. 6.5 per cent. Meanwhile, RBI Governor Shaktikanta Das announced an important decision regarding UPI payment. The Central Bank has proposed to increase the limit of tax payment through UPI from Rs 1 lakh to Rs 5 lakh. Who will ultimately benefit from this and how?
If you are confused that RBI has increased the limit for making daily payments through UPI, let us tell you that this has not happened at all. Only the limit for tax payment through UPI has been increased.
Who will benefit and how?
Taxpayers whose tax liability is high can complete the tax payment transaction quickly. For this reason, the limit for tax payment through UPI has been increased. As of now, if a taxpayer’s liability is, say, Rs 1.5 lakh, then he cannot fully avail tax payment through UPI. Rather, he has to use other net banking solutions like NEFT or RTGS.
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By increasing this limit by the RBI, it will be easier for people to meet their tax obligation on time. Not only this, but the tax collection of the government will also increase. Another benefit of this will be that the transaction costs of the people will be reduced.
You will save money even if you pay taxes
Taxpayers will get another benefit by increasing the tax payment limit through UPI by the RBI from Rs 1 lakh to Rs 5 lakh. If taxpayers are currently making tax payments using net banking tools like NEFT or RTGS or making payments through credit and debit cards. Then they have to pay transaction charges. On the contrary, transaction charges are not charged at the time of payment through UPI. Hence, they will save some money even by paying tax up to Rs 5 lakh.
There are different limits for different categories.
Both the government and the RBI are aware that among all the payment options, UPI is the most preferred mode among people. Therefore, different limits have been fixed for different categories of payments through UPI. According to the National Payments Corporation of India (NPCI), which maintains UPI, the limit for making normal payments through UPI is only Rs 1 lakh.
In December 2023, the RBI had increased the payment limit through UPI to Rs 5 lakh for expenses incurred in hospitals and educational institutes. People started getting their benefits while paying hospital bills or education fees.
Similarly, in December 2021, the UPI limit for investing in Retail Direct Scheme or IPO was increased to Rs 5 lakh. While, as per NPCI, the UPI limit for capital market, collections, insurance, remittance of money from abroad, etc. is Rs 2 lakh.
Complementary feature like credit card will be available on UPI
According to an ET report, another UPI-related announcement is that of Delegated Payments. You will now be able to create a delegated account under UPI for any member of your family. That member will be able to make UPI payments from your account up to a fixed limit. This feature will be something like the additional feature of a credit card. In this, you give permission to another person to use your credit line.
