NPCI Launches UPI Circle Feature for Secondary User Payments in India

Unified Payments Interface (UPI) has already transformed digital transactions in India by offering a fast, easy, and secure way to pay. Now, the National Payments Corporation of India (NPCI) is raising the bar with its new feature, UPI Circle, introduced to give financially dependent individuals easier access to digital payments. This innovation is set to change how secondary users, such as family members, can interact with UPI systems, creating more flexibility in how people manage and share financial responsibilities.

What is UPI Circle?

UPI Circle is the latest feature introduced by NPCI that allows primary users—individuals who have an active UPI account linked to their bank account—to authorise secondary users, who may or may not have a UPI account, to make transactions. This feature is designed to empower those who rely on others for financial support, enabling them to perform digital transactions without needing their bank account or UPI profile.

How Does UPI Circle Work?

The process is quite simple. Primary users can go into their UPI app, scan a QR code, or enter the UPI ID of the secondary user they wish to authorise. At present, the manual entry of phone numbers is not allowed for security reasons. Once the secondary user is added, they can set up their account, complete the authentication process with either a passcode or biometric verification, and start making transactions.

Security Measures in UPI Circle

One of the key highlights of UPI Circle is its robust security features. NPCI has implemented various layers of security to ensure safe transactions. Every transaction made by the secondary user must be authenticated through either a biometric scan or a passcode, ensuring that the account remains protected from unauthorised access. Furthermore, the primary user can monitor every transaction, providing full control over the financial activities within their UPI Circle.

Partial vs. Full Delegation

There are two distinct forms of delegation in UPI Circle: Partial Delegation and Full Delegation.

• Partial Delegation: The secondary user must get approval from the primary user for each transaction they make. This ensures that the primary user has full oversight and can prevent unauthorised or unwanted transactions.
• Full Delegation: This mode allows the secondary user to make transactions independently. However, there are certain restrictions in place. Secondary users cannot exceed a monthly limit of Rs. 15,000, with each individual transaction being capped at Rs. 5,000.

Limitations and Caps on Transactions

NPCI has put stringent caps on transaction amounts to ensure security. For instance, during the first 24 hours, a secondary user cannot exceed Rs. 5,000 in total transactions. After this period, they can make transactions up to Rs. 15,000 per month. Importantly, primary users can set different limits for different secondary users, tailoring access based on trust and necessity.

How to Add a Secondary User to UPI Circle

Here’s a quick step-by-step guide for adding a secondary user:

1. Open your UPI app and select the UPI Circle feature.
2. Scan the secondary user's QR code or enter their UPI ID.
3. authorise the secondary user and ensure they authenticate using a passcode or biometric.
4. Set transaction limits based on your preferences.

Role of Primary Users in Monitoring Secondary Users

UPI Circle provides an easy way for primary users to monitor the financial activities of their secondary users. Every transaction is logged, and the primary user has the option to track these activities in real-time. This ensures full transparency and helps maintain control over finances.

Google Pay Integration with UPI Circle

Google Pay, one of the most popular UPI apps in India, has announced that it will be integrating UPI Circle into its app. This means users can soon expect to see these features available within Google Pay, making it easier for them to authorise secondary users and monitor their transactions directly from the app.

Impact on Financially Dependent Individuals

UPI Circle is a boon for financially dependent individuals, especially those who may not have the means to open a bank account. By giving them access to digital transactions, UPI Circle empowers them to manage day-to-day expenses without relying on cash or physical cards.

Conclusion

UPI Circle is a game-changer for India’s digital payment landscape. With its flexible, secure, and user-friendly features, it provides a much-needed solution for families and financially dependent individuals. This innovation by NPCI is poised to reshape how people manage shared financial responsibilities, making digital transactions more inclusive.

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