UPI Circle By NPCI: A New Way To Manage Digital Transactions With Delegates

The National Payments Corporation of India (NPCI) has unveiled a new feature called “UPI Circle,” which allows users to share their UPI accounts with others. Approved during the UPI Steering Committee meeting on August 3, 2023, this feature enables primary users to delegate payment tasks to trusted secondary users.

What is UPI Circle?

UPI Circle is designed to assist individuals who may not directly control their finances but still need to perform digital transactions. It permits primary users to link their UPI accounts with secondary users, giving the latter the ability to make payments on behalf of the primary user.

Types of Delegation:

• Full Delegation: The primary user grants the secondary user the authority to initiate and complete transactions within specified spending limits. The secondary user can execute these transactions without additional approval from the primary user.
• Partial Delegation: The secondary user can initiate a transaction, but the primary user must authenticate and finalize it using their UPI PIN. This option allows for greater control over significant transactions while still providing flexibility for routine payments.

Who Can Benefit from UPI Circle?

UPI Circle is advantageous for individuals who prefer not to manage their digital payments directly but still need access to financial services. This includes:

• Elderly family members who depend on younger relatives for financial management.
• Children or dependents needing access to funds for everyday expenses.
• Household workers requiring digital transaction capabilities without managing their own bank accounts.

Transaction Limit:

Primary users can set a transaction limit for secondary users. Under the full delegation feature of UPI Circle, secondary users are allowed to spend up to Rs 15,000 per month, with each transaction capped at Rs 5,000, as per NPCI guidelines.