UPI Circle Launched: What Is It, How Does It Work And Other Details

NPCI has set the maximum monthly limit at Rs 15,000 where a single transaction cannot exceed Rs 5,000.

The National Payments Corporation of India (NPCI) has launched a new feature called "UPI Circle", aimed at enhancing digital payment accessibility. This new feature allows primary users to add family members and friends as secondary users, enabling them to make transactions using the primary user's bank account, all within pre-set limits. It is designed to extend the convenience of UPI transactions to those who may not have their own bank accounts or are hesitant about using digital payments. As per NPCI, the feature is aimed at empowering secondary users who might be financially dependent to access UPI. 

In a press note, NPCI detailed the features of "UPI Circle". As per the agency, primary users can now delegate payment authorisation to secondary users, such as family members or employees, who can then perform transactions directly from the primary user's account. This feature is expected to be particularly beneficial for parents providing allowances to children, senior citizens who are cautious about conducting digital transactions, and business owners who need to manage petty cash for their staff.

The feature does come with layers of intervention and security measures. Once added, primary users will have the option to set spending limits or require approval for each transaction. The "Spend With Limits" option allows secondary users to make payments within defined limits without needing further approval, while the "Approve Every Payment" option offers greater control by requiring the primary user's approval for each transaction.