In recent years, digital payments have become the norm in India, thanks to the Unified Payments Interface (UPI) system. UPI has revolutionized the way people send and receive money, making it simple, secure, and almost instant.
In August 2024, the National Payments Corporation of India (NPCI) introduced UPI Circle, a feature designed to enhance financial inclusion by allowing primary UPI users to delegate payment responsibilities to trusted secondary users. This feature allows users to share their UPI access with trusted family members or friends, facilitating transactions for those who might not have their own UPI-linked bank account.
This article explores what UPI Circle is, its benefits, and provides a step-by-step guide to setting it up.
What is UPI Circle?
UPI Circle is a feature that lets you authorize a secondary user to make payments from your UPI-linked bank account. This user could be a family member like a spouse, child, or even a friend. With UPI Circle, you no longer need to give cash for expenses or even share account details — you can simply delegate UPI access with defined spending limits or approval requirements.
Use Cases for UPI Circle:
1. Parents with College-Going Children: Enable children to handle expenses without handing out cash, ensuring they spend within set limits.
2. Senior Citizens: Children can manage daily transactions for their elderly parents who may be less comfortable with digital payments.
3. Busy Professionals: Delegate household shopping to a helper, setting a transaction limit to control spending.
4. Business Owners: Simplify expense handling by allowing employees or drivers to cover expenses like fuel costs without giving them direct cash.
Benefits of UPI Circle
1. Secure Delegation: You can assign up to five secondary users, each with specific access limits.
2. Control and Monitoring: Set transaction limits or choose to approve every payment, giving you complete control.
3. Convenient for Dependents: Children, elderly family members, or helpers can manage payments without direct access to your account.
4. Reduces Cash Dependency: Eliminate the need to give physical cash, ensuring better tracking of expenses.
How to Set Up UPI Circle: Step-by-Step Instructions
Ready to set up UPI Circle? Here’s a simple guide using the BHIM-UPI app as an example. Please note that other UPI apps may offer similar options.
Step 1: Open Your UPI App and Select ‘UPI Circle’
• Launch the BHIM-UPI app (or another UPI app that supports UPI Circle) on your phone.
• Look for the ‘UPI Circle’ option on the home screen and tap on it. This will take you to a new page where you can start adding people to your UPI Circle.
Step 2: Add Family or Friends
• Tap on ‘Add Family or Friends’. You’ll see two options to add a secondary user: either by scanning their QR code or by entering their UPI ID manually.
• Option 1: Scan the QR code of the person you want to add.
• Option 2: Enter the UPI ID of the person (like user@upi) and tap ‘Add to my UPI Circle’.
Note: The person you’re adding must be saved in your contacts.
Step 3: Choose Access Type
Once you’ve added the secondary user, you’ll have two types of access options to choose from:
1. Spend with Limits: Set a spending limit for the secondary user. They can only make transactions within this predefined amount.
2. Approve Every Payment: Require your approval for every transaction initiated by the secondary user.
Select the option that best suits your needs and tap ‘Proceed’.
Step 4: Set Spending Details (If Applicable)
If you choose the ‘Spend with Limits’ option, you’ll need to enter:
• Monthly Spending Limit: The maximum amount the secondary user can spend in a month.
• End Date: The duration for which this delegation is valid.
• Bank Account: The account from which funds will be deducted.
After filling out these details, tap ‘Proceed’ and confirm the setup by entering your UPI PIN.
Step 5: Finalize and Activate
• Your UPI Circle setup is almost complete. The delegation will be activated within 30 minutes.
• For urgent transactions, the secondary user can request immediate approval from you if needed.
Note: Every new member added to your UPI Circle undergoes a 24-hour cooling period, during which their transaction limit is restricted to ₹5,000.
Managing Your UPI Circle
• Notifications: Approval requests will appear as notifications on your app and can be accessed via the bell icon or the ‘Approve to Pay’ section.
• Tracking: You can monitor all transactions made by secondary users through the transaction history.
• Edit or Remove Users: You can modify access limits or remove users from your UPI Circle at any time.
Important Guidelines
• Required App Version: Ensure your UPI app is up-to-date. For BHIM-UPI, version 3.8.1 or above is required.
• Keep UPI IDs Handy: Make sure to have your friend or family member’s UPI ID and phone number saved.
• Control at Your Fingertips: No funds will be debited until a transaction is completed by the secondary user.
Conclusion
UPI Circle is a game-changer for families and small businesses that rely on digital payments. It provides an easy, secure, and controlled way to share UPI access, offering convenience for those who may struggle with digital payments or need assistance. By following the steps outlined above, you can set up UPI Circle in just a few minutes and experience a new level of flexibility and control in managing your finances.
Whether you’re a busy professional, a caring parent, or a small business owner, UPI Circle offers a streamlined way to handle delegated payments securely and efficiently. Give it a try and make the most of this innovative UPI feature!
