The Reserve Bank of India (RBI) on Thursday made a major change for UPI users in terms of its maximum limit. Before the UPI limit, RBI Governor Shaktikanta Das said the Monetary Policy Committee has decided by a 4:2 majority to keep the repo rate unchanged as inflation has risen above 5 percent and is still above the targeted level of 4 percent. After the meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India, the RBI Governor announced the monetary policy. In his address, RBI Governor Shaktikanta Das has increased the limit of tax payment through UPI from Rs 1 lakh to Rs 5 lakh. This means that up to Rs 5 lakh can now be sent through UPI for every such transaction. Currently, the limit for tax payment through UPI is Rs 1 lakh per transaction. Increasing it to Rs 5 lakh per transaction will make it easier for taxpayers to make large payments through UPI and save time. Now, the question arises what is the maximum limit of UPI Payment for the common people? Below is what you should know-
What is the maximum UPI Payment limit?
Notably, this is not the first time RBI has hiked per transaction limit via UPI. In December 2023, RBI hiked the limit to Rs 5 lakh from certain payments, such as hospital and educational institutions. NPCI was quoted by a portal that states, "For normal UPI the transaction limit is up to Rs 1 Lakh per transaction. For a few specific categories of 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."
It means for the common people the maximum UPI payment limit is Rs 1 lakh. The latest hike of the UPI limit to Rs 5 lakh is for tax payment.
The RBI governor said that except for some special high value transactions, the tax payment limit through UPI is Rs 1 lakh, which was being demanded to be increased and this demand has been accepted by the RBI MPC. "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 further ease tax payments by consumers through UPI,' said Shaktikanta Das.
Furthermore, RBI has made a big announcement regarding the facility of delegated payments through UPI. Under this, it will be easy for the primary user to make UPI transactions to the secondary user. Transactions up to a fixed limit can be done through UPI and for this, the secondary user will not need a separate bank account.