UPI transaction limit set to change: The National Payments Corporation of India has made a Significant announcement that will benefit millions of taxpayers in the country. Starting from 17th September, 2024 now Individuals will be able to use the Unified Payment Interface system to pay taxes upto 5 Lakhs per transaction.
This follows the NPCI directive to raise the UPI Transaction Limit specifically for the tax payments.
New UPI Transaction Limit
On 24th August , 2024 NPCI has announced the increase in per transaction limit for tax payments to Rs. 5 Lakhs . This change aims to simplify the tax payment process and encourage the more high valued transactions to get underway.
The new Upi Transaction method will also be applicable to other transactions done with Hospitals, Educational Institutes, IPOs and RBI Retail Direct Schemes. Before doing any such transaction one should check for Compatibility of Banks and Payment App.
According to a Report published the banks, payment service providers, and UPI apps have been directed to adjust their systems to accommodate this new limit for the MCC 9311 category, which pertains to verified tax payment merchants. NPCI emphasized that acquiring entities should ensure that their merchants in this category strictly adhere to tax payments.
“NPCI announcement to increase the transaction limit to Rs 5 lakh for tax payments using UPI, from Rs 1 lakh earlier is a significant move, propelling India towards digitally inclusive economy,” said Rahul Jain, CFO of NTT DATA Payment Services India. He added that the initiative would enhance the tax-collection system, reduce costs, and offer a more convenient payment method for taxpayers.
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