The Reserve Bank of India (RBI) has announced an increase in the UPI transaction limit for tax payments from Rs 1 lakh to Rs 5 lakh per transaction. This announcement was made by RBI Governor Shaktikanta Das during the third bi-monthly monetary policy briefing for the current financial year on Thursday.
Key Highlights
- UPI Transaction Limit Increase:
- Previous Limit: Rs 1 lakh
- New Limit: Rs 5 lakh
- Purpose: Tax payments
- Digital Lending Apps:
- Proposal for a public repository to check unauthorized players.
- Home Loans:
- Governor Das expressed concern over the rising disbursals of top-up home loans and urged lenders to take remedial actions.
Summary Table
| Aspect | Previous Limit | New Limit |
|---|---|---|
| UPI Transaction Limit | Rs 1 lakh | Rs 5 lakh |
| Purpose | Tax Payments | Tax Payments |
Context
The increase in the UPI transaction limit is aimed at facilitating larger tax payments through the Unified Payments Interface (UPI) system. This move is expected to enhance the convenience and efficiency of tax-related transactions for individuals and businesses.
Additional Measures
- Public Repository for Digital Lending Apps:
- To monitor and regulate digital lending apps and prevent unauthorized players from operating in the market.
- Concerns Over Top-Up Home Loans:
- Governor Das highlighted the issue of rising disbursals of top-up home loans and called on lenders to take necessary remedial actions to address this concern.
TOPICS:
RBI