RBI Raises UPI Transaction Limit to Rs 5 Lakh for Tax Payments

The Reserve Bank of India (RBI) has increased the transaction limit for Unified Payments Interface (UPI) from Rs 2 lakh to Rs 5 lakh for tax payments. This decision aims to enhance the convenience and efficiency of tax payments, particularly for higher-value transactions. The move is part of the RBI's broader strategy to promote digital payments and reduce reliance on cash transactions. By raising the UPI transaction limit, the RBI is encouraging taxpayers to leverage digital platforms, ensuring faster and more secure payment processes. This change also aligns with the government's push towards a cashless economy.