The National Payments Corporation of India (NPCI) has increased the transaction limits for tax payments using UPI (Unified Payment Interface), by allowing people to send 5 lakh in a single transaction. Acquiring entities must ensure that the classification of their merchants within MCC-9311 strictly adheres to the tax payments only. Merchants shall ensure UPI as a payment mode is enabled for the increased limit for the tax payments category.
Conditions
Acquiring entities must ensure that the classification of theirmerchants within MCC-9311strictly adheres to thetax payments only. Merchants shall ensure UPI as a payment mode is enabled for the increased limit for the tax payments category.
Earlier limit and Now
- Earlier, the transaction limit for UPI wasRs 1 lakhexcept for certain categories of payments which have higher transaction limits.
- It has now been decided to enhance the limit for tax payments through UPI fromRs 1 lakh to Rs 5 lakh per transaction.
- This will further ease tax payments by consumers through UPI.
Categories of Payment
- 1. Tax payments
- 2. Hospital and educational services
- 3. IPOs and government securities
Why this decision has been taken
The NPCI has communicated thatdue to the increasing popularity of UPIas a favored payment mode, there is a necessity to elevate the per transaction limit within UPI for designated categories.
What is NPCI?
- The National Payments Corporation of India (NPCI)is an initiative taken by theReserve Bank of India (RBI)andIndian Bank’s Association (IBA)to operate the retail payments and settlement systems in India.
- This organization was founded in the year2008under thePayment and Settlement Systems Act, 2007.
UPI
Unified Payments Interface(UPI)is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood.
