The National Payments Corporation of India (NPCI) has announced a significant update to the Unified Payments Interface (UPI) transaction limits. Beginning September 16, 2024, the maximum amount for UPI transactions will be increased to Rs 5 lakh for tax payments. This new limit is a part of NPCI's broader effort to enhance the convenience and efficiency of financial transactions in the country.

This updated limit will not only apply to tax payments but also to a range of other transactions. Users will be able to use UPI for high-value payments to hospitals, educational institutions, Initial Public Offerings (IPOs), and RBI retail direct schemes. This expansion is expected to simplify and streamline the payment process for large transactions, making it more accessible for a wide range of users.

Despite these changes, it is crucial for individuals to verify with their respective banks and UPI apps to ensure that they support the new transaction limits. Compatibility checks will help users avoid any potential issues when making high-value transactions.