RBI raised the maximum amount that can be paid with UPI from Rs 1 lakh to Rs 5 lakh

Current Context: The Reserve Bank of India (RBI) recently increased the transaction limit for tax payments through the Unified Payments Interface (UPI) from Rs 1 lakh to Rs 5 lakh. 

• Key Highlights:
• Increased Transaction Limit:
• The RBI has raised the maximum transaction limit for UPI from Rs 1 lakh to Rs 5 lakh.
• This increase is specifically aimed at facilitating higher-value transactions, particularly for tax payments.
• Purpose of the Update:
• The primary goal is to make it easier for individuals and businesses to make larger payments using UPI.
• This move is expected to enhance the convenience and efficiency of digital transactions, especially for tax-related payments.
• Impact on Users:
• Users can now make single UPI transactions up to Rs 5 lakh, which was previously capped at Rs 1 lakh.
• This change is likely to benefit taxpayers, businesses, and individuals who need to make high-value payments.

Question:

1 What is the new maximum transaction limit for tax payments through UPI as per the recent RBI update?

• A) Rs 50,000
• B) Rs 5 lakh
• C) Rs 1 lakh
• D) Rs 10 lakh

Answer: B) The Reserve Bank of India (RBI) recently increased the transaction limit for tax payments through the Unified Payments Interface (UPI) from Rs 1 lakh to Rs 5 lakh.