On the sidelines of the MPC announcement today, the RBI has increased the limit for tax payment via the UPI or unified payments interface to Rs 5 lakh.

“Currently, the transaction limit for UPI is ₹1 lakh except for certain category of payments which have higher transaction limits. It has now been decided to enhance the limit for tax payments through UPI from ₹1 lakh to ₹5 lakh per transaction. This will further ease tax payments by consumers through UPI,” read the Governor’s statement.