• In the Monetary Policy Committee meeting of August 2024, one of the significant announcements was the increase in the UPI tax payment limit. The new limit has been raised from Rs. 1 lakh to Rs. 5 lakhs, making it more convenient for taxpayers to settle their dues using the Unified Payments Interface (UPI).
• This move is aimed at enhancing the digital payment ecosystem in India, especially for higher-value transactions. It encourages the use of UPI for tax-related payments, streamlining the process and making it more efficient for taxpayers.
• The increased limit will allow taxpayers to make larger payments directly through UPI, which is a fast, secure, and widely used payment method.
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