The Reserve Bank of India (RBI) this week announced two major changes to its Unified Payments Interface (UPI) system, aimed at expanding its reach and capabilities.
Higher limit for tax payments via UPI
To help taxpayers, RBI has increased the transaction limit for paying taxes through UPI from Rs 1 lakh to Rs 5 lakh per transaction. This fivefold increase is expected to make the tax payment process more digital.
Announcing the decision at the 50th meeting of the Monetary Policy Committee on Thursday, RBI Governor Shaktikanta Das said, “This will further facilitate payment of consumption tax through UPI.”
New “Delegated Payments” feature
The second major change introduces the new representative payment feature in UPI. This innovation allows the primary user to allow another person (secondary user) to make UPI transactions up to a certain limit from the primary user’s bank account.
“This allows one person to conduct UPI transactions with another person within the bank account of the primary user without the secondary user having a separate bank account for UPI,” Governor Das said.
This feature is expected to significantly increase UPI usage, especially among segments of the population such as children and the elderly who do not have their own UPI-linked bank accounts.
Dilip Aspe, CEO of National Payments Corporation of India (NPCI), which operates UPI, said on social media: “There is never a dull moment for payment processors in India.”
PhonePe co-founder Sameer Nigam welcomed the delegated payment feature, saying it will “significantly accelerate UPI adoption among the next 300-400 million Indians”.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
