RBI hikes tax payment limit through UPI from ₹1 lakh to ₹5 lakh: Governor Shaktikanta Das

The Reserve Bank of India has raised the tax payment limit through UPI from ₹1 lakh to ₹5 lakh, RBI Governor Shaktikanta Das announced in his monetary policy review address on Thursday, August 8.

"Currently, the transaction limit for the UPI is ₹1 lakh, except for certain categories of payment which have higher transaction limits. It has now been decided to enhance the limit for tax payment through UPI from ₹1 lakh to ₹5 lakh per transaction," Das said.

"This will further ease payments by consumers through UPI," he added.

The RBI has also decided to keep the policy rate unchanged for the ninth consecutive time, nothing that food inflation remains stubborn.

The rate increase cycle was paused in April last year after six consecutive rate hikes, aggregating to 250 basis points since May 2022.

He said MPC will remain watchful of elevated food inflation.

The RBI keeps the growth projection unchanged at 7.2% for the current fiscal.