RBI’s initiative will reduce the cost of tax-collection, and make tax-payments more convenient for taxpayers
FinTech BizNews Service
Mumbai, August 8, 2024: Shaktikanta Das, Governor, Reserve Bank of India, today announced a number of new measures while announcing the decisions of the MPC.
Rahul Jain – CFO, NTT DATA Payment Services India, reflects upon these measures: The Reserve Bank has taken several measures for the orderly development of the digital lending ecosystem in India.
Enhancing Transaction Limit for Tax Payments through UPI
The Central Bank’s announcement to increase the transaction limit to Rs 5 lakh for tax payments using Unified Payments Interface (UPI), from Rs 1 lakh earlier is a significant move, propelling India towards digitally inclusive economy. This initiative will strengthen the tax-collection system, reduce the cost of tax-collection, and make tax-payments more convenient for taxpayers. This also means more benefits to taxpayers in terms of seamless, transparent, secured, and ease of making high value transactions.
Introduction of ‘Delegated Payments’ through UPI
Allowing Delegated Payments can be a pivotal step in expanding the userbase of Unified Payments Interface (UPI). Through this development, two family members can now use one bank account for making UPI payments. While we wait for more details, this initiative will further strengthen and enhance UPI payments especially in rural areas, where financial literacy is less, and one bank account is used by one family. This mechanism will enhance user convenience by ensuring effective control through the usage limit authorization feature. This will also empower consumer confidence with easy, safe, and hassle-free financial transactions, thereby contributing towards a digitally empowered nation.
