UPI Circle is a feature that lets you authorize someone else to make transactions from your UPI account within a set limit based on your preferences. This allows the secondary user to carry out transactions from your UPI-linked bank account without needing their own bank account linked to UPI.
UPI Circle enables multiple individuals to use a single bank account for UPI payments. This feature is especially useful for family members, such as senior citizens, spouses, or children, who may not have their own bank accounts or where the family operates with a shared account.
According to the National Payments Corporation of India (NPCI), a primary user can delegate up to five secondary users, while secondary users can only accept delegation from one primary user.
Here’s a step-by-step guide on using UPI Circle: For this guide, we’re using the BHIM-UPI app, though other UPI apps may also support this feature.
Step 1: Open the BHIM-UPI app and select ‘UPI Circle’. A new page will open where you need to click ‘Add Family or Friends’. You can add contacts to your UPI Circle by either scanning a QR code or entering their UPI ID.
Step 2: For this example, we’ll use the UPI ID option. After entering the UPI ID of the person you want to add, click ‘Add to my UPI Circle’. You’ll then be prompted to enter the phone number of this contact. Note: the contact must be saved in your phone’s contact list to be added to your UPI Circle.
Step 3: You’ll now see two access options — ‘Spend with Limits’ or ‘Approve Every Payment’. The first option allows the secondary user to make transactions within a set limit, while the second requires you to approve each transaction they initiate. Choose the option that best suits your needs, then click on ‘Proceed’.
Step 4: For this guide, we’ve chosen ‘Spend with Limits’. In this option, you’ll need to specify three details — the monthly spending limit for the secondary user, the authorization end date, and the bank account from which funds will be deducted. Once you’ve entered these details, click ‘Proceed’ and enter your UPI PIN to authorize. That’s it! The secondary user is now part of your UPI Circle.
Vishal Maru, Global Services Head at Financial Software & Systems (FSS), explains, “Delegated payments through UPI bring multiple benefits. It allows primary users to manage payments for dependents, like parents paying on behalf of children or elderly citizens delegating payments to their family. This feature enables the primary account holder to monitor transactions, prevent fraud, and maintain a budget. It’s also more convenient than sharing a bank account or a larger amount of money.”
Maru further notes that banks stand to benefit from UPI delegated payments, as it could bring in a new group of potential customers, particularly younger users who are new to financial services. “Once a relationship is established, banks can cater to these new users. Additionally, this feature could drive higher transaction volumes for banks,” he says.
Key Points about UPI Circle
Here are a few essential things to know about UPI Circle:
- Required App Version: UPI Circle is available on the BHIM app version 3.8.1 or higher.
- Keep UPI IDs Ready: Make sure to have your friend or family member’s UPI ID and contact saved.
- Control Over Your Money: Your account won’t be debited until the secondary user completes a transaction.
- Activation of Limits: Full delegation limits will be active 30 minutes after setup. For urgent payments, the secondary user can still request approval from the primary user.
- Finding Approval Requests: Approval requests appear as notifications or pop-ups in the app. If missed, you can access them through the bell icon or the ‘Approve to Pay’ section on the homepage.
- 24-Hour Cooling Period: Each new member added has a 24-hour cooling period, during which transactions are limited to ₹5,000.
Source: msn
Read the latest and breaking Hindi news | English News on अब पाएं सबसे निष्पक्ष, विश्वसनीय और तेज खबरें, सिर्फ WWW.THEINSIGHTTODAY.COM पर।. Get live Hindi news about India and the World from politics, sports, bollywood, business, cities, lifestyle, astrology, spirituality, jobs and much more..Read Latest News on your Mobile app so Download Mobile app The Insight Today