New Delhi. The RBI MPC meeting started on 6 August 2024. Today the RBI Governor has announced the decisions taken in the meeting. This time also it has been decided to keep the repo rate stable. 

Apart from this, the Reserve Bank of India (RBI) announced to increase the limit of tax payment through UPI. RBI Governor Shaktikanta Das said that UPI has become the most preferred method of payment due to its convenient features. Currently, the limit of tax payment for UPI is Rs 1 lakh.

Das said that based on various use-cases, the Reserve Bank has, from time to time, reviewed and enhanced the limits for certain categories such as capital market, IPO subscription, loan collection, insurance, medical and educational services, etc.

Announcing the decisions of the MPC meeting, Das said that since direct and indirect tax payments are common, regular and of high value, it has been decided to increase the limit of tax payment through UPI from Rs 1 lakh to Rs 5 lakh per transaction. Necessary instructions regarding tax payment will be issued separately.

Delegated payments will start soon

According to RBI, the user base of Unified Payments Interface (UPI) has reached 42.4 crores. However, the user base is likely to expand further. There is also a proposal to introduce 'delegated payments' in UPI.

Shaktikanta Das said that 'Delegated Payments' will allow one person (primary user) to set UPI transaction limits for another person (secondary user) on the primary user's bank account.

This is expected to increase the reach and use of digital payments across the country. Detailed instructions will also be issued soon in this regard. Along with this, RBI has proposed to prepare public data of digital loan providing apps to check unauthorized companies.

Apart from this, Governor Das said that guidelines were issued on September 2, 2022 to address concerns on protection of customer interests, data privacy, interest rates and recovery processes, mis-selling, etc. However, media reports have exposed the presence of unscrupulous companies in digital lending which falsely claim to be associated with RBI (RE).