RBI increases tax payment for UPI limit from 1-5 lacks, Click here to know about the latest news:

 In a significant move, the Reserve Bank of India (RBI) has increased the tax payment limit via Unified Payments Interface (UPI) from Rs 1 lakh to Rs 5 lakh. This decision, announced by RBI Governor Shaktikanta Das, is part of a broader initiative to bolster the digital lending infrastructure, which includes establishing a public repository managed by a regulated entity.

The RBI has also introduced a mandate for lenders to report credit information to Credit Information Companies (CICs) every two weeks, ensuring that borrowers' credit data is updated more frequently. This is expected to provide a more accurate reflection of borrowers' creditworthiness.

In a further effort to streamline financial transactions, the RBI has reduced the cheque clearing cycle from two working days to just a few hours, significantly speeding up the process.

Despite these changes, the central bank has maintained the repo rate at 6.5% for the ninth consecutive policy meeting, citing persistent inflation rates above its 4% target. The majority of the monetary policy committee members voted to keep the rate steady, aligning with market predictions.

Inflation, particularly food inflation, has been a concern, with rates climbing to 5.08% in June, well above the RBI's comfort zone. Governor Das emphasized the importance of price stability for sustained economic growth and cautioned against reducing rates prematurely.

Following the policy announcement, there was a slight dip in the Indian bond market, with the 10-year yield increasing by 2 basis points to 6.88%. The Indian rupee held steady, but the NSE Nifty 50 Index saw a decline, reflecting the cautious sentiment of investors in light of global market uncertainties and recent actions by other central banks, such as the Bank of England's rate cut. The RBI's decisions come at a time when there is considerable pressure on central banks worldwide to navigate through economic challenges.