The Reserve Bank of India (RBI) has significantly increased the transaction limit for tax payments through the Unified Payments Interface (UPI) from Rs 1 lakh to Rs 5 lakh per transaction. This move is aimed at simplifying the tax payment process for individuals and businesses alike.

By raising the limit, the RBI aims to promote digital payments and reduce reliance on cash-based transactions.

This change is expected to benefit taxpayers by providing a more convenient and efficient method for settling tax liabilities.

The increased limit will particularly impact high-net-worth individuals and businesses, who often deal with substantial tax payments. With UPI’s secure and instant transaction capabilities, taxpayers can now make large tax payments with ease.