The Reserve Bank of India (RBI) has made it easier for people to pay bigger amounts using UPI. Now, you can pay up to Rs 5 lakh as taxes through UPI, which was earlier limited to Rs 1 lakh. Governor Shaktikanta Das announced this change as part of the RBI’s monetary policy announcement. The central bank wants to encourage more people to use digital payments and make it simpler to handle big transactions.
Increasing the UPI limit for tax payments is helpful for several reasons:
- Easier for taxpayers: Paying taxes in one go, especially for big amounts, can be more convenient.
- Less paperwork: Digital payments reduce the need for physical cash and paperwork.
- Boost to digital payments: This change will encourage more people to use UPI for other payments as well.
The RBI has also increased the UPI limit for payments to hospitals and schools to Rs 5 lakh. This will help people pay big medical and education bills more easily.
The central bank has also made changes to e-mandates. These are automatic payments for things like mutual fund investments, insurance premiums, and credit card bills. Now, you can set higher limits for these e-mandates.
These changes are aimed at making digital payments more accessible and convenient for everyone.
If you pay a lot of tax, you can now pay it in one go using UPI. This can save you time and effort. You should also check the new limits for e-mandates to see if it benefits you.
Overall, these changes are positive steps towards a cashless economy and will make financial transactions smoother for people.
