Higher limit for tax payments via UPI
In a move that will benefit taxpayers, the RBI has increased the transaction limit for tax payments through UPI from ₹1 lakh to ₹5 lakh per transaction.This fivefold increase is expected to ease the process of making larger tax payments digitally.
“This will further ease tax payments by consumers through UPI,” said RBI Governor Shaktikanta Das while announcing the decision at the 50th meeting of the Monetary Policy Committee on Thursday.
New “Delegated Payments” feature
The second major change introduces a new “Delegated Payments” feature to UPI. This innovation will allow a primary user to authorise another individual (secondary user) to make UPI transactions from the primary user’s bank account, up to a specified limit.
“This would enable an individual to allow another individual to make UPI transactions up to a limit from the primary user’s bank account without the need for the secondary user to have a separate bank account linked to UPI,” Governor Das explained.
This feature is expected to significantly boost UPI adoption, particularly among demographics like children and senior citizens who may not have their own bank accounts linked to UPI.
Dilip Asbe, CEO of the National Payments Corporation of India (NPCI), which operates UPI, commented on social media: “Never a dull moment for payment systems in India.”
PhonePe co-founder Sameer Nigam praised the Delegated Payments feature, stating it “will significantly accelerate UPI adoption by the next 300-400 million Indians.”
