New Delhi: The Reserve Bank of India has announced two significant changes to the Unified Payments Interface (UPI) system. The details are as follows:
Increase in transaction limits for tax payments using UPI
Under the new rule, the central bank has increased the transaction limit for tax payments through UPI to Rs 5 lakh per transaction from an earlier limit of Rs 1 lakh per transaction. The enhanced transaction limit is expected to ease the process of making larger tax payments digitally.
Introduction of ‘Delegated Payments’ Feature
This new feature will enable a primary user (the account holder) to authorize another person (a secondary user) to make payments from the primary user’s bank account up to a specified limit. This feature is expected to deepen the usage and reach of digital payments.
PhonePe Co-founder Sameer Nigam, reflecting on the feature stated that it will significantly accelerate UPI adoption by the next 300-400 million Indians.
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