RBI MPC Meet 2024: Tax payment limit increased through UPI, soon the facility of delegated payments will also be available
RBI MPC Meet 2024: RBI Governor said that the MPC committee has decided to keep the repo rate stable. Apart from this, many big decisions have also been taken. Today the RBI Governor has announced the decisions taken in the MPC meeting. Governor Shaktikanta Das said that the tax payment limit through UPI has been increased from Rs 1 lakh to Rs 5 lakh.
The RBI MPC meeting started on 6 August 2024. Today the RBI Governor has announced the decisions taken in the meeting. This time also it has been decided to keep the repo rate stable.
Apart from this, the Reserve Bank of India (RBI) announced to increase in the limit of tax payments through UPI. RBI Governor Shaktikanta Das said that UPI has become the most preferred method of payment with its seamless features. Currently, the tax payment limit for UPI is Rs one lakh.
Das said that based on various use cases, the Reserve Bank has reviewed and increased the limits for certain categories such as capital markets, IPO subscription, loan collection, insurance, medical and educational services, etc. from time to time.
Announcing the decisions of the MPC meeting, Das said that since direct and indirect tax payments are common, regular, and of high value. Therefore, it has been decided to increase the limit of tax payments through UPI from Rs 1 lakh to Rs 5 lakh per transaction. Necessary instructions regarding tax payment will be issued separately.
According to RBI, the user base of the Unified Payments Interface (UPI) has reached 42.4 crores. However, the user base is likely to expand further. There is also a proposal to introduce 'delegated payments' in UPI.
Shaktikanta Das said that 'delegated payments' will allow a person (primary user) to set UPI transaction limits for another person (secondary user) on the bank account of the primary user.
This is expected to increase the reach and use of digital payments across the country. Detailed instructions in this regard will also be issued soon. Along with this, RBI has proposed to prepare public data of digital loan-providing apps to check unauthorized companies.
Apart from this, Governor Das said that guidelines were issued on September 2, 2022, to address concerns on protection of customer interests, data privacy, interest rates and recovery processes, mis-selling, etc. However, media reports have exposed the presence of unscrupulous companies in digital loan providing which falsely claim to be associated with RBI (RE).
