NPCI unveils UPI Circle: How to Use UPI Circle on Google Pay?

The National Payments Corporation of India (NPCI) has launched a groundbreaking feature called ‘UPI Circle’, set to redefine how digital transactions are shared among trusted users. This new offering allows primary users to extend UPI access to up to five secondary users, providing them with the ability to make transactions from the primary user’s account.

In simple words, it's a new feature designed to revolutionize digital transactions by allowing users to share their UPI accounts with others. This innovative feature is particularly useful for families and individuals who may not have their own bank accounts or are hesitant to use digital payments independently.

Expanding Financial Inclusivity Through UPI Circle

In a nation where UPI has already transformed the landscape of digital payments, UPI Circle further broadens the scope by empowering secondary users, whether they have a bank account or not with the ability to conduct seamless transactions. It is designed for simplicity and control, primary users can authorize secondary users to access their UPI accounts with two distinct options: Full Delegation or Partial Delegation. This ensures that the primary user maintains a supervisory role while granting financial independence to secondary users.

How does UPI Circle work?

UPI Circle is accessible through leading UPI apps such as Google Pay, BHIM, and PhonePe. After adding a secondary user via QR code or UPI ID, the primary user sets a transaction limit and delegation type. Under Full Delegation, secondary users can make transactions up to ₹5,000 per transaction with a monthly cap of ₹15,000. For those who prefer closer oversight, Partial Delegation allows the primary user to approve each payment request manually, ensuring control over each transaction.

Flexibility and Security

One of UPI Circle’s most appealing features is the balance between flexibility and control. The primary user can monitor every transaction made by the secondary user, ensuring full transparency and security. Moreover, a 24-hour cooling period is implemented when a new secondary user is added, limiting transactions to ₹5,000 during this time. This safeguards both users while maintaining the convenience of digital payments.

Key Benefits of UPI Circle

Empowers Financial Independence: UPI Circle enables secondary users, especially those without a UPI-linked bank account, to perform transactions with ease.

Enhanced Family Financial Management: Families and caregivers can now manage shared finances seamlessly, reducing the need for cash transactions.

Zero Additional Fees: There are no extra costs for using UPI Circle, making it an accessible feature for all UPI app users.

Financial Inclusion: UPI Circle extends the reach of digital payments to individuals who may have been excluded from the digital economy.

How to set up UPI Circle?

Setting up UPI Circle is quick and easy, offering a streamlined process for adding secondary users. Here’s how:

For the Primary User:

• Launch your preferred UPI app.
• Navigate to the UPI Circle feature in the app’s profile or settings menu.
• Enter the secondary user's UPI ID, scan their UPI QR code, or select them from your contact list.
• Verify Contact: Confirm the secondary user’s mobile number for security reasons.

Choose Delegation Type:

• Full Delegation: Set a monthly limit (up to ₹15,000) allowing the secondary user to make transactions independently with a ₹5,000 per transaction cap.
• Partial Delegation: Retain control and approve each transaction request initiated by the secondary user.
• Define the transaction limits based on the chosen delegation mode.
• Accept the terms and conditions and confirm the setup.

For the Secondary User:

• The secondary user will receive a notification on their UPI app.
• Tap “Accept” to confirm your inclusion in the UPI Circle.
• Begin making payments within the transaction limits set by the primary user.

Important Points to Remember

• A primary user can add up to five secondary users, but each secondary user can only be linked to one primary user at a time.
• A 24-hour cooling-off period applies when adding a secondary user, limiting transactions to ₹5,000 during this time.
•  All transactions made by secondary users are visible to the primary user, ensuring complete transparency.

As UPI Circle continues to roll out, it is expected to transform how families, caregivers, and individuals manage their finances, paving the way for a more inclusive and digitized future. With the simplicity of setup and no additional fees, UPI Circle is set to become a staple in the digital payment landscape, reducing reliance on cash and promoting seamless, secure transactions across India.