In a move to further ease digital payments, Reserve Bank of India (RBI) Governor Shaktikanta Das announced an increase in the transaction limit for tax payments through Unified Payments Interface (UPI) from ₹1 lakh to ₹5 lakh per transaction. This enhancement aims to simplify tax payments for consumers through UPI.
Additionally, the RBI introduced a facility of delegated payments through UPI, allowing primary users to authorize secondary users to make transactions up to a set limit from the primary user’s bank account, without the need for a separate bank account linked to UPI. This move is expected to deepen the reach and usage of digital payments, particularly UPI.
In other key announcements, the RBI:
- Retained the repo rate at 6.5% for the ninth consecutive time
- Maintained its real GDP growth forecast for FY25 at 7.2%, with a slight revision in Q1 growth to 7.1% from 7.3%
- Kept GDP growth forecasts for Q2, Q3, and Q4 unchanged at 7.2%, 7.3%, and 7.2%, respectively
- Projected GDP growth for FY26 at 7.2%
These decisions aim to strike a balance between managing inflation and supporting economic growth, while promoting digital payments and financial inclusion.
