Necessary instructions will be issued separately.

UPI Transaction Limit Latest News: In a major development, the Reserve Bank of India Governor Shaktikanta Das on Thursday made a big announcement regarding the limit of UPI transactions as it has increased the limit of UPI transactions by 5 times to Rs 5 lakh. 

Announcing the decisions taken in the meeting, RBI Governor Shaktikanta Das said that UPI has become the most preferred method of online payment today due to its facilities. Currently, the limit for tax payments through UPI is from Rs 1 lakh to Rs 5 lakh per transaction.

UPI limit increased for transaction

Shaktikanta Das said that based on different use cases, the Reserve Bank has reviewed and increased the transaction limits for certain categories like capital markets, IPOs, insurance, medical and educational services etc. from time to time. 

Shaktikanta Das said, "Currently, the transaction limit for UPI is Rs 1 lakh except for certain categories 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."

As per the Statement on Development and Regulatory policies, "UPI has become the most preferred mode of payments, due to its seamless features. Currently, the transaction limit for UPI is capped at Rs 1 lakh. Based on the various use cases, the Reserve Bank has periodically reviewed and enhanced the limits for a few categories like capital markets, IPO subscriptions, loan collections, insurance, medical and educational services etc." 

"As direct and indirect tax payments are common, regular, and high value, it has been decided to enhance the limit for tax payments through UPI from Rs 1 lakh to Rs 5 lakh per transaction. Necessary instructions will be issued separately," the statement added.