If you have recently heard about UPI Circle and don’t know what it is, you are at right place. In this article we are telling your all about New feature in UPI payments which is UPI Circle.
In August 2024, the National Payments Corporation of India (NPCI) introduced a groundbreaking feature called UPI Circle, revolutionizing the way we think about digital payments. This innovative system allows multiple users to share a single UPI ID, making digital transactions more accessible and convenient for families and trusted individuals. Let’s dive into the details of UPI Circle and explore how it’s set to transform the landscape of digital payments in India.
What is UPI Circle?
UPI Circle is a new facility that enables the delegation of authority for one UPI ID to multiple users. Unlike the traditional UPI system where each individual needed their own bank account linked to a unique UPI ID, UPI Circle allows trusted secondary users to access and use a primary user’s UPI ID for transactions.
Key Features of UPI Circle:
✅ Shared Access: Multiple individuals can use one UPI ID.
✅ Primary and Secondary Users: The account holder (primary user) can grant access to trusted secondary users.
✅ Customizable Limits: Primary users can set predefined access limits for secondary users.
Two Types of Delegation:
1️⃣ Full Delegation: Secondary users can make payments within set limits.
2️⃣ Partial Delegation: Secondary users request approval from the primary user for transactions.
✅ Security Measures: Mandatory biometric or app passwords for secondary users.
How Does UPI Circle Work?
Linking Process:
- The primary user scans a QR code or enters the UPI ID.
- They select a contact from their list to provide access.
- The linking process begins automatically.
Setting Limits:
- For full delegation, the maximum limit is Rs. 15,000 per month and Rs. 5,000 per transaction.
- Partial delegation follows existing UPI limits.
User Control:
- Primary users can grant or revoke permissions as needed.
- They can view transaction history of secondary users.
Benefits of UPI Circle:
✅ Increased Accessibility: Provides digital payment access to those without bank accounts, such as children and elderly family members.
✅ Reduced Cash Dependency: Encourages more people to use digital payments.
✅ Expanded UPI User Base: Allows more individuals to benefit from UPI technology.
Security Measures and Guidelines:
👉 Contact List Restriction: Secondary users must be selected from the primary user’s contact list for security.
👉 User Limits: A primary user can give access to up to 5 secondary users.
👉 App Security: Biometric or app-password is mandatory for all secondary users.
👉 Cooling Period: For the first 24 hours after linking, there’s a daily transaction limit of Rs. 5,000 for both primary and secondary users.
👉 Transaction Visibility: Primary users have full access to secondary users’ transaction history.
Who Can Benefit from UPI Circle?
- Families: Parents can provide controlled access to children for daily expenses.
- Elderly Individuals: Adult children can assist their parents with digital payments.
- Households: Employers can give limited access to household help for necessary purchases.
How to Use UPI Circle:
- Update your UPI app to the latest version supporting UPI Circle.
- As a primary user, navigate to the UPI Circle feature in your app.
- Select the contact you wish to add as a secondary user.
- Choose between full or partial delegation and set transaction limits.
- Complete the verification process to finalize the linking.
Future Implications:
UPI Circle is poised to significantly impact India’s digital payment ecosystem. By making UPI more accessible to a broader range of users, it’s expected to drive growth in digital transactions and further reduce reliance on cash. This innovation aligns with India’s goal of creating a more inclusive digital economy.
UPI Circle represents a significant leap forward in digital payment technology. By allowing shared access to UPI IDs while maintaining robust security measures, it addresses the needs of various user groups and situations. As this feature rolls out across UPI apps, it’s set to make digital transactions more convenient and accessible for millions of Indians, further cementing UPI’s position as a cornerstone of India’s digital payment infrastructure.
Remember to stay updated with your UPI app and bank notifications for the official launch of UPI Circle in your area. Embrace this new feature responsibly to enjoy the benefits of shared digital payments while maintaining financial security.
Quick Links
| NPCI Press Release | Download PDF |
| More Details on UPI Circle | Read Here |
UPI Circle FAQs
What is UPI Circle?
UPI Circle is a new feature introduced by NPCI that allows multiple people to share a single UPI ID, enabling primary users to delegate access to trusted secondary users for making payments.
Q: How many secondary users can a primary user add to their UPI Circle?
A: A primary user can give access to up to 5 secondary users or devices.
Q: What are the two types of delegation in UPI Circle?
A: The two types of delegation are Full Delegation and Partial Delegation. Full Delegation allows secondary users to make payments within set limits, while Partial Delegation requires primary user approval for transactions.
Q: What is the maximum transaction limit for secondary users in Full Delegation?
A: For Full Delegation, the maximum monthly limit is Rs. 15,000 per delegation, and the maximum per transaction limit is Rs. 5,000.
Q: How does a primary user link a secondary user to their UPI Circle?
A: The primary user needs to scan a QR code or enter the UPI ID, then select the contact from their contact list to provide access. Manual entry of mobile numbers is restricted for security purposes.
Q: Are there any security measures in place for secondary users?
A: Yes, biometric or app-password authentication is mandatory for all secondary users.
Q: Can a secondary user have multiple primary users?
A: No, a secondary user can only have one primary user.
Q: Does the primary user have visibility of transactions made by secondary users?
A: Yes, the primary user has access to the transaction history of secondary users and can view the entire bank account statement.
Q: Is there a cooling period for newly linked UPI Circle users?
A: Yes, for the first 24 hours after linking, there’s a daily transaction limit of Rs. 5,000 for both primary and secondary users.
Q: What is the purpose of introducing UPI Circle?
A: UPI Circle aims to provide easy access to digital payments for kids and elders who don’t have their own bank accounts, reduce cash dependency, and increase the number of UPI users by allowing access to those without bank accounts through family members or friends.