NPCI's UPI Circle empowers financial inclusion by allowing primary account holders to authorize secondary users for transactions, ensuring control and security through various features and limits.

The National Payments Corporation of India (NPCI) has unveiled a groundbreaking feature, UPI Circle, designed to revolutionize digital payment accessibility within the Unified Payments Interface (UPI) system. This innovative addition allows primary account holders to include family members and friends as secondary users, granting them the ability to conduct transactions within specified limits using the primary user’s bank account. This move is expected to significantly enhance financial inclusion, particularly benefiting individuals without personal bank accounts or those hesitant about digital transactions.

Key Features and Security Measures

Delegation and Empowerment: UPI Circle introduces a unique delegation capability, enabling primary users to authorize secondary users, such as family members or employees, to perform transactions directly from the primary account. This feature is anticipated to be particularly useful for parents managing children’s allowances, senior citizens cautious about digital payments, and business owners handling petty cash for staff. It empowers these groups to participate in the digital economy without necessarily having their own bank accounts or navigating complex digital payment processes.

Robust Security Controls: To ensure the utmost security, UPI Circle incorporates a range of control measures. Primary users have the flexibility to set spending limits or opt to approve each transaction individually. The “Spend With Limits” option allows transactions within predefined boundaries without further approval, offering a balance between convenience and control. On the other hand, the “Approve Every Payment” option provides more stringent oversight, ensuring that primary users maintain full control over their accounts.
Transaction Limits for Safety: The NPCI has established a maximum monthly limit of ₹15,000 for secondary users, with single transactions capped at ₹5,000. Additionally, there’s a ₹5,000 limit for the first 24 hours of use. These limits serve as safeguards to protect both primary and secondary users from potential financial risks associated with unauthorized or excessive spending.

Setting Up UPI Circle: A Seamless Process

Activating UPI Circle is a straightforward process:

Access the UPI Circle menu within your UPI-enabled app and select “Add Family or Friends”.
Add secondary users by entering their UPI ID, scanning a QR code, or selecting them from your phone contacts.
Set permissions for each secondary user by choosing between “Spend With Limits” or “Approve Every Payment”.
Secondary users will receive an invitation, which they need to accept to become part of your UPI Circle.
Once accepted, secondary users can start making payments within the specified limits.

It’s important to note that primary users can add up to five secondary users, while secondary users can only be linked to one primary account. Primary users also retain the ability to revoke access at any time, ensuring full control over their accounts and financial transactions.

UPI Circle represents a significant step forward in expanding financial inclusion and simplifying digital payments for a wider segment of the Indian population. By enabling shared access to bank accounts within a secure and controlled environment, NPCI is empowering individuals and families to participate more fully in the digital economy. This innovative feature is expected to foster greater financial literacy, promote digital payment adoption, and contribute to India’s journey towards a cashless society.