The National Payments Corporation of India (NPCI) has increased the transaction limit for tax payments using the Unified Payments Interface (UPI). This will benefit thousands of taxpayers in the country. Taxpayers can now use UPI to pay taxes up to Rs 5 lakh. The new change is aimed at simplifying and promoting large transactions using UPI.
As per NPCI circular dated August 24, with UPI emerging as the preferred payment method, there is a need to increase the value limit per transaction on UPI for specific categories… Keeping all these things in view, the value limit per transaction on UPI has been increased. It is. It has now been increased to Rs 5 lakh for institutions in categories related to tax payment. On August 8, 2024, the RBI announced an increase in the limit for tax payment through UPI from Rs 1 lakh to Rs 5 lakh per transaction.
Starting Monday (September 16), the updated UPI limit will also be applicable for other transactions including hospital expenses, educational institutions, IPOs and RBI retail direct schemes. However, these transactions must be done through verified merchants and users should also check if their banks and UPI apps support the increased limit.
read this too
Further, NPCI has directed banks, payment service providers and UPI apps to ensure that the new transaction limits are implemented by September 15, 2024. They will also have to follow the strict merchant categorization rules of MCC 9311. These businesses will have to accept UPI as a payment mechanism for higher limits, especially for tax payments.
UPI transaction limits for various payments
The standard UPI transaction limit for peer-to-peer transactions is Rs 1 lakh. However, banks can set their own UPI transaction limits. For example, according to Google Pay UPI, which issued bank limits, the UPI transaction limit at Allahabad Bank is Rs 25,000. While HDFC Bank, ICICI Bank have allowed UPI transactions up to Rs 1 lakh for peer-to-peer payments. Apart from this, the transaction limits of different UPI apps also differ.
There are other transaction limits for different types of UPI transactions. The limit for UPI transactions related to capital market collection is Rs 2 lakh per day. Banks can also set personal daily UPI transaction limits. So, at the end of the day, the amount of money you can transact through the UPI app will depend on your bank and the UPI app you are using.
