For tax payments, the UPI limit—which was once fixed at Rs. 1 lakh—has been raised to Rs. 5 lakh. The goal of this measure, according to the central bank, is to encourage more people to pay their taxes online using digital payment methods. The necessity for numerous payments has decreased because of the increase in the cap, which allows taxpayers to make greater tax payments in a single transaction.

Based on particular use cases, the Reserve Bank has evaluated and raised the restrictions on a regular basis for a number of categories, including capital markets, initial public offerings (IPOs), debt collections, insurance, medical, and educational services.

Furthermore, the RBI unveiled Delegated Payments, a brand-new UPI function. With the use of this function, you can grant permission to another person to pose as a secondary user and conduct UPI transactions from your bank account up to a predetermined limit that you choose. For this to function, the secondary user does not require a separate bank account linked to UPI.

Governor Das also announced that the repo rate would remain steady at 6.5 percent. The RBI also introduced several measures to improve the digital lending ecosystem, including the creation of a public repository under a regulated entity to ensure accurate credit information. Lenders are now required to report credit information to Credit Information Companies (CIC) every two weeks, allowing borrowers to receive faster updates.