UPI Payments: Two Major Changes Announced by RBI
The use of digital payments has increased in recent times. Currently, apps like Google Pay, PhonePe, and UPI apps make it easy to pay anywhere and anytime. It is now possible to recharge, pay electricity bills, pay policies, and send and receive money within seconds with just a click on a smartphone. Recently, some changes are set to be made in UPI that will make online transactions even easier. The Reserve Bank of India (RBI) has announced two significant changes to the Unified Payments Interface (UPI) system this week. These changes include an increase in the tax payment limit through UPI and the introduction of a delegated payment feature.
Increase in Tax Payment Limit through UPI: The first change is that the Reserve Bank of India (RBI) has increased the tax payment limit through UPI. Previously, this limit was up to Rs. 1 lakh, but it has now been raised to Rs. 5 lakh. Taxpayers will benefit from this increase, allowing transactions from Rs. 1 lakh to Rs. 5 lakh through UPI. This five-fold increase is expected to facilitate digital tax payments for many taxpayers. RBI Governor Shaktikanta Das announced this decision at the 50th meeting of the Monetary Policy Committee last week.
Delegated Payment Feature: Another major change is the new “Delegated Payments” feature in UPI. This feature will allow a bank account holder to authorize another user in their family to make transactions from their bank account. This means the second user will not need to open a separate bank account linked to UPI. In simple terms, if the bank account holder grants access to another family member through this new facility, it will be valid, as clarified by the governor. This feature will be useful for individuals such as children and senior citizens, whose own bank accounts are not linked with UPI.
