UPI transaction limit increased from Rs 1 lakh to Rs 5 lakh, But not for all payments

The Reserve Bank of India (RBI) has proposed to hike the UPI transaction limit for tax payments from Rs 1 lakh to Rs 5 lakh. Now, taxpayers can pay taxes more quickly. Though, it is great news for the taxpayers, it will not be done for free.

According to report, the UPI transaction for tax payments are made via debit and credit cards, which were generally done for free, will now be charged with an additional fee.

This is not the first time that the RBI has hiked the limit. In December 2023, the central bank hiked the limit to Rs 5 lakh from certain payments, such as hospital and educational institutions.

UPI transaction limit for different categories

The NPCI has stated that the payment limit per day is up to Rs 1 Lakh. Meanwhile, the transaction for transaction in UPI like Capital Markets, Collections, Insurance, Foreign Inward Remittances the transaction limit is up to 2 lakh and for Initial Public Offering (IPO) and Retail Direct Scheme the limit is up to Rs 5 lakh per transaction.”

In December 2021, The transaction limit for UPI payments for Retail Direct Scheme and IPO subscriptions was increased to Rs 5 lakh.

What RBI Governor said on hiking UPI limit

As per the RBI Governor statement, “Currently, the transaction limit for UPI is Rs 1 lakh except for certain category of payments which have higher transaction limits. It has now been decided to enhance the limit for tax payments through UPI from Rs 1 lakh to Rs 5 lakh per transaction. This will  ..

Also Read: Income Tax Return filing date ends today, know what will be the consequences if not filed