*New Delhi, August 8, 2024* — The Reserve Bank of India (RBI) has announced a significant policy change, increasing the Unified Payments Interface (UPI) tax payment limit from Rs. 1 lakh to Rs. 5 lakh. This move is set to benefit large taxpayers, simplifying the payment process for substantial tax amounts.Previously, the UPI tax payment limit was capped at Rs. 1 lakh, but the new limit allows individuals and businesses to make tax payments up to Rs. 5 lakh using UPI without incurring additional charges. This adjustment aims to streamline high-value transactions and provide greater flexibility for tax compliance.In contrast, payments made via debit or credit cards will continue to attract additional charges. The RBI’s decision underscores its commitment to enhancing the efficiency of digital transactions while maintaining cost-effectiveness for users.