UPI Rule Changes: The National Payments Corporation of India (NPCI) has increased the transaction limit for tax payment using UPI to help millions of taxpayers of the country.
UPI Rule Changes: If you also use Unified Payment Interface (UPI), then a big change is going to happen soon. The government had said in a circular that taxpayers can soon make tax payments up to Rs 5 lakh through UPI. Earlier this limit was very low. This change will provide great relief to millions of taxpayers.
UPI Rule Changes: The National Payments Corporation of India (NPCI) has increased the transaction limit for tax payment using UPI to help millions of taxpayers of the country. The circular was issued by NPCI on 24 August 2024. It was said that UPI is emerging as a preferred payment method, hence there is a need to increase the per transaction limit in UPI for specific categories. It was further said that the per transaction limit in UPI for institutions has been increased to Rs 5 lakh for tax payment.
NPCI gave instructions to banks
NPCI asked banks, payment service providers and UPI apps to ensure that the transaction limit should be increased for the MCC 9311 category of verified merchants. NPCI said that taxpayers should also ensure that UPI is enabled as a payment mode for the increased limit for the tax payment category.
When will this limit be implemented?
NPCI has asked banks, payment service providers and UPI apps to implement the increased limit of tax payment limit by September 15. This means that till September 16, one can use UPI to make tax payments of up to Rs 5 lakh. Along with this, individuals can now make UPI payments of up to Rs 5 lakh per transaction for other categories as well.
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You can also make payments of up to Rs 5 lakh for these services
UPI payments up to Rs 5 lakh can also be made for hospitals and educational institutions, IPOs and RBI Retail Direct Schemes. But it is worth noting that this will be applicable only on a few transactions. Apart from this, you will have to check with your bank and UPI to know how much limit they are allowing.
How much limit on which services?
UPI limit of up to Rs 1 lakh has been given for most peer to peer transactions. However, these banks decide what their UPI limit will be. For example, Allahabad Bank gives a limit of up to Rs 25000 for UPI payments. HDFC Bank and ICICI Bank have set the limit at Rs 1 lakh. UPI’s limit for capital market, collection, insurance and foreign transactions is up to Rs 2 lakh.
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