The National Payments Corporation of India (NPCI) has increased transaction limits for tax payments using Unified Payments Interface (UPI), allowing people to transfer Rs 5 lakh in a single transaction starting Sunday.
“Acquiring entities must ensure that the classification of their merchants within MCC-9311 strictly adheres to the tax payments only….Merchants shall ensure UPI as a payment mode is enabled for the increased limit for the tax payments category,” said NPCI in a circular.
While announcing its monetary policy statement on August 8, 2024, RBI had announced the enhancement of the limit for tax payments through UPI from Rs 1 lakh to Rs 5 lakh per transaction.
Consumers can now make UPI payments of up to Rs 5 lakh per transaction for the following categories: a) tax payments, b) hospital and educational services, and c) IPOs and government securities.
Two additional enhancements were previously introduced through circulars issued in December 2021 and December 2023.
NPCI has also introduced a new feature called ‘UPI Circle’ on its Unified Payments Interface (UPI) platform. This feature allows primary UPI account holders to securely delegate payment responsibilities to trusted secondary users.
For instance, parents can provide their children with limited access to their accounts for managing daily expenses. The RBI anticipates that this will greatly improve the convenience and inclusivity of digital payments across India.
The RBI’s ongoing efforts to improve the UPI framework also include measures to enhance security. For example, a proposed four-hour window for users initiating payments over Rs 2,000 to new recipients will allow for transaction modifications or reversals, adding an additional layer of control for users.
First Published: Sep 13, 2024 | 10:58 AM IST
Thank you for taking the time to read this article! I hope you found the information insightful and helpful. If you enjoyed this type of content, please consider subscribing to our newsletter or joining our community. We’d love to have you! Feel free to share this article with your friends and family, who might also find it interesting.
Kanishk Singh has always had a keen interest in fast-paced cars. For the past three years, he has been writing about automobiles, but his fascination with cars dates back even further. He thoroughly enjoys learning about their features and expressing his thoughts through his writing. Kanishk also has a profound interest in the stock market, shares, and business strategies. He possesses a wealth of knowledge on these subjects and consistently writes articles on them. Currently, he is working as a writer for Lattestnews24, specifically focusing on the Automobile, Finance, and Business categories. His well-crafted words are highly appreciated by the readers, as they find them both informative and creative.