(MENAFN- Live Mint) If you rely on the Unified Payments Interface (UPI ) for most of your payments, then there is good news for you.
NPCI – which runs UPI -- has now raised the limit of ₹5 lakh per transaction for a particular category of transactions.
The limit has been raised with regards to tax payments only. The enhanced limit will be applicable to 'verified merchants'. This, effectively, means one can use UPI for making tax payment of upto ₹5 lakh in a single transaction.
So, now consumers will be able to make UPI payments of ₹5 lakh per transaction for these categories: a) Tax payments, b) hospitals and educational services, c) IPO and G Sec.
The earlier two enhancements were made through circulars issued in Dec 2021 and Dec 2023, respectively.
NPCI, in its latest circular, stated that with UPI emerging as a preferred payment method, there is a need to enhance the per transaction limit in UPI for specific categories.
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The NPCI has now issued the circular instructing banks/ PSPs/ UPI apps to ensure that per transaction limit is enhanced in the new category of tax payment.
“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,” reads the circular.
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The circular also categorically states that the members are requested to ensure compliance with the same by Sept 15, 2024.
During RBI policy announcement
It is vital to recall that while announcing the monetary policy statement on August 8, 2024, Reserve Bank of India's Governor Shaktikanta Das had announced to raise the limit of tax payments through UPI from ₹one lakh to ₹5 lakh.
Read this Livemint article for more details about this.
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“It has now been decided to enhance the limit for tax payments through UPI from ₹1 lakh to ₹5 lakh per transaction. It will further ease payments for consumers through UPI,” he had said then.
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