The National Payments Corporation of India (NPCI) has recently introduced a groundbreaking feature called UPI Circle. This innovative addition to the Unified Payments Interface (UPI) system aims to simplify and enhance the payment process by allowing users to add secondary members to their bank accounts. With this feature, secondary users can make UPI payments directly from the primary user's account, streamlining transactions and expanding the flexibility of managing funds.
UPI Circle, also referred to as Delegate Payments, enables primary users to designate trusted individuals as add-on members on their bank accounts. This functionality allows secondary users to execute UPI transactions for both merchants and individuals, with the funds being debited from the primary account. The introduction of UPI Circle is designed to make payments more accessible and manageable for those who may not have their own bank accounts or prefer to leverage the primary user’s account for transactions.
Initially, UPI Circle will be accessible through the BHIM App, one of the key platforms for UPI transactions in India. Google Pay, another major player in the digital payments space, has also announced plans to integrate the UPI Circle feature into its platform. This integration is expected to roll out soon, providing users of Google Pay with the same convenient features. Other popular payment platforms, such as PhonePe and Paytm, are anticipated to adopt the UPI Circle feature by December 2024 or early 2025, further extending its reach and functionality.
The UPI Circle feature is particularly advantageous for specific user groups, such as students who do not have their own bank accounts or those who depend on their parents for making online payments. By allowing these users to be added as secondary members, UPI Circle offers a practical solution for managing and facilitating payments without requiring each individual to maintain a separate bank account. This can simplify financial management and make online transactions more accessible for a broader audience.
One of the notable aspects of UPI Circle is the ability for primary users to monitor transactions made by secondary users. This oversight can be managed through the UPI app and bank statements, providing transparency and control over how the account funds are utilized. To add a secondary user, the primary user can either scan a QR code or enter a UPI ID. This feature ensures that adding a trusted individual is both straightforward and secure.
Upon linking a secondary user to the primary account, there is a daily transaction limit of Rs. 5,000 for the first 24 hours. This initial limit is designed to provide an additional layer of security as the new connection is established. Beyond this introductory period, the UPI Circle feature operates in two distinct modes:
Partial Delegation: In this mode, the primary account holder must manually approve each payment request made by the secondary user. This setup offers a high level of control, allowing the primary user to review and authorize each transaction individually before it is processed.
Full Delegation: This mode provides more flexibility by enabling the primary user to set a spending limit of up to Rs. 15,000 for the secondary user. Transactions within this pre-set limit can be made without requiring manual approval from the primary user, streamlining the payment process while still maintaining oversight through the established limit.
Conclusion
The UPI Circle feature represents a significant advancement in the realm of digital payments, offering users greater control and flexibility in managing their financial transactions. By allowing primary users to add secondary members and monitor their transactions, NPCI has addressed a key need for more inclusive and manageable payment solutions. As the feature rolls out across various platforms, including Google Pay, PhonePe, and Paytm, it is poised to become a valuable tool for simplifying online payments and expanding accessibility for users across different demographics.
With its focus on security, flexibility, and user convenience, UPI Circle is set to enhance the overall UPI experience, making it easier for individuals and families to manage their digital transactions effectively. Whether for students, dependents, or anyone in need of streamlined payment solutions, UPI Circle offers a promising enhancement to the digital payments landscape in India.