The National Payments Corporation of India ( NPCI ) has increased transaction limits for tax payments using Unified Payments Interface ( UPI ), allowing people to transfer Rs. 5 lakh in a single transaction starting Sunday.
While announcing the monetary policy statement on August 8, 2024, Reserve Bank of India ( RBI ) had announced the change of the limit for tax payers through UPI from Rs 1 lakh to Rs 5 lakh per transaction.
“Acquiring entities must ensure that the classification of their merchants within MCC-9311 strictly adheres to the tax payments only….Merchants shall ensure UPI as a payment mode is enabled for the increased limit for the tax payments category,” said NPCI in a circular.
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By the introduction of the latest circular, now the consumers can make UPI payments of upto Rs 5 lakh for the following categories:
The previous two additions were made through circulars issued in December 2021 and December 2023.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here.
NPCI has introduced a new feature called ‘UPI Circle’ on its UPI Platform, which allows primary UPI account holders to securely delegate payment responsibilities to trusted secondary users. This will help the UPI users in various ways such as with this facility introduced the parents can now have access over the children’s account and help in managing their daily expenses.
The RBI’s ongoing initiatives for improving the UPI framework also includes various measures to improve the security. For instance, a proposed four-hour window for users initiating payments over Rs 2,000 to new recipients will allow for transaction modifications or reversals, adding an additional layer of control for users.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here.
These measures of the RBI will be very helpful in case of fraudulent transfers. The RBI anticipates that this will greatly improve the convenience and inclusivity of digital payments across India.
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