UPI Users can now Send 5 Lakh For Some Transactions [Current Affairs]
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.
Conditions
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.
Earlier limit and Now
- Earlier, the transaction limit for UPI was Rs 1 lakh except for certain categories of payments which have higher transaction limits.
- It has now been decided to enhance the limit for tax payments through UPI from Rs 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 that due to the increasing popularity of UPI as 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 the Reserve Bank of India (RBI) and Indian Bank’s Association (IBA) to operate the retail payments and settlement systems in India.
- This organization was founded in the year 2008 under the Payment 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.
Source: currentaffairs by adda247
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