What is UPI Circle?
UPI Circle is a way for a main user to enable a secondary user to use their bank account to perform UPI transactions. The main user puts limitations on transactions to make sure they are safe and in control.
This function is great for families, company owners, and students because it lets everyone see payments while yet keeping things private. It makes it easier to share financial tasks without putting safety at risk, which means you don’t have to rely on cash or separate accounts as much.
How does UPI Circle work?
Step 1: The main user starts a UPI Circle in the UPI app of their choice.
Step 2: You can add the second user to the Circle by using their UPI ID or by scanning a QR code.
Step 3: The main user choose how much money they can spend and how much they want to give permission for, choosing between complete or partial delegation.
Step 4: The second user gets the UPI Circle invitation and accepts it.
Step 5: After the setup is done, the secondary user can make UPI transactions as long as they stay within the restrictions and permissions provided by the primary user.
What is UPI Circle for?
The purpose of UPI Circle is to make digital payments easier for everyone to use. This is how it helps:
- It allows kids and seniors without their own bank accounts to make digital payments through a trustworthy family member or acquaintance.
- It encourages more individuals, particularly those without bank accounts, to utilise the digital payment system, thereby reducing their reliance on cash.
- It enhances the UPI user base by extending its benefits to individuals who previously lacked a personal bank account.
How does UPI Circle work?
1. Starting UPI Circle
The main user launches the payment app and chooses the UPI Circle option. They can add people they trust, such family or friends, to the Circle.
2. Adding a Second User
You can add a second user by either scanning a QR code or giving them their UPI ID. The primary user makes sure that the secondary user is on their contact list.
3. Choosing the type of delegation
The main user decides what kind of delegation to use: full or partial. They can change these parameters to get the level of control they want.
4. The secondary user says yes to the invitation
The secondary user gets an invitation to join the UPI Circle and must accept it in order to get in.
5. Payment by the Secondary User
The secondary user can now pay with the UPI Circle account. Depending on the setup, the principal user’s associated bank account processes transactions within the established limitations or after approval.
6. Approval for Payments (if needed)
If the main user has chosen partial delegation, they will get a request for payment that they can either accept or turn down.
How to Make a UPI Circle
Step 1:
Launch the BHIM-UPI app and choose “UPI Circle”. Choose “Add Family or Friends” on the new page. You can add people by either scanning their QR code or typing in their UPI ID.
Step 2:
Choose the UPI ID option. Type in the UPI ID of the person you want to add, and then tap “Add to my UPI Circle.” Next, kindly share a phone number from your contact list with them.
Step 3:
Pick an access type: “Spend with Limits” or “Approve Every Payment”. The first option lets you establish a limit on how much money you can spend, and the second option needs your permission for every transaction. Choose the option that works best for you, then click “Proceed”.
Step 4:
If you pick “Spend with Limits”, you need to establish a monthly limit, an end date, and a bank account for transactions. Click “Proceed”, type in your UPI PIN, and then confirm the setting. After that, the secondary user will be added to your UPI Circle.
What do you need to do to add supplementary users?
In order to add a second user to UPI Circle, the following must be true:
1. A UPI app such as BHIM, or a similar one must link the main user’s bank account to it.
2. The secondary user needs to have a valid UPI ID, and the primary user needs to keep it in their contact list.
Here are the steps to add a secondary user:
Step 1: The secondary user gives the QR code to the primary user.
The secondary user makes their UPI QR code and sends it to the first user. They can also give their UPI ID to be added by hand.
Step 2: The primary user checks the secondary user
The main user checks the secondary user’s information, such as their UPI ID and phone number.
Step 3: The main user chooses whether to delegate fully or partially
Based on their needs, the main user chooses whether to give complete or partial delegation.
Step 4: The secondary user agrees to the request
The secondary user looks over the request and agrees to finish the setup.
UPI Circle Feature: Different Kinds of Delegation
The UPI Circle feature adds the idea of delegation, which lets a main user provide a secondary user access to transactions. There are two levels of access for this delegation: complete delegation and partial delegation. You can change it to fit your needs.
Both choices provide you the freedom to manage payments however you want, whether you want complete control or limited access. Here’s how each kind works:
1. Full Delegation
With full delegation, the secondary user can make transactions without getting permission from the primary user beforehand. This category is best for people you trust, such family members or critical colleagues, when independence and efficiency are very important.
Advantages:
It makes transactions easier and faster, which makes the process more efficient.
It cuts down on the need for the main user by letting other people handle things on their own.
2. Partial delegation
In partial delegation, the main user sets restrictions or needs approval for each transaction that the secondary user starts. This makes it easier to keep things under control while still giving people freedom.
Good things:
It makes sure that spending is well-controlled and stays within bounds.
It makes things simple and safe by letting people see exactly what is happening with each transaction.
NPCI Rules for Primary and Secondary UPI Users
NPCI has specified the following rules as critical security protocols to make sure that UPI Circle is a safe and trustworthy mechanism to provide someone else access:
- Both primary and secondary users must have their own individual user journeys on the UPI and PSP apps, which means that each user can use whichever UPI app they prefer.
- Secondary users must use either biometric verification or an app password to confirm transactions.
- A primary user can give permission to up to five secondary users or devices, but each secondary user can only be linked to one prime user. This means that a single secondary user cannot have more than one primary user.
- Secondary users can only do Rs. 15,000 worth of transactions in a month and Rs. 5,000 worth of transactions in a single transaction.
- The current UPI transaction restrictions still apply for partial delegation.
- The principal user selects if subsequent users can have full or limited access.
- The primary user is in charge of all of the secondary user’s UPI activities.
- For UPI IDs that have just been linked, both the primary and secondary users can only spend Rs. 5,000 per transaction for the first 24 hours.
- The principal user can see the secondary user’s transaction history, which includes the full bank account statement.
Guidelines from NPCI for UPI Companies
- We must respect the RBI’s current rules on “harmonisation of turnover time” and paying customers back for failed authorised transactions.
- The Online Dispute Resolution (ODR) service is still available.
- All current UPI rules will still be in effect unless the authorities send out a new notice specifically for the UPI Circle.
The NPCI introduced this feature to assist households where only one individual has a bank account and a UPI ID associated with it. Now, other family members can safely get to the shared UPI ID. The primary user regulates the account’s usage, ensuring its safe and responsible use.
How to Use UPI Circle to Make Payments
UPI Circle makes transactions easy by letting secondary users ask for payments while letting the primary user stay in charge, depending on the type of delegation. This is how the process works:
Step 1: Secondary User Requests Payment
The secondary user starts a payment request in their UPI app by typing in the amount and choosing the type of transaction. They can either go forward right away (if it’s within constraints) or let the principal user know and get their approval, depending on the sort of delegation.
Step 2: Primary User Confirms the Payment
The main user gets a message asking them to approve the transaction for partial delegation. The main user confirms the payment by entering their UPI PIN after looking it over. If the transaction is within the pre-set boundaries, full delegation does not require any extra permission.
Limit on UPI Circle Transactions
The main user of UPI Circle sets a monthly spending restriction for the secondary user, which can be as high as ₹15,000 according to rules stipulated by the National Payments Corporation of India (NPCI). This limit keeps everything in check and makes sure you can get to your money.
The secondary user can start and finish payments without the primary user having to enter a UPI PIN as long as the transaction is within the defined limit. This functionality makes small, regular transactions easier, which is more comfortable for trustworthy users.
Advantages of UPI Circle for Handling Group Payments
UPI Circle makes it easy and quick to share and keep track of group spending. This tool makes it easier to share bills, pool money for gifts, or split the cost of shared subscriptions by letting you easily delegate and oversee payments.
With UPI Circle, you can see contributions and payments in real time, which makes sure that everyone in the group is aware of everything. This simplifies the process and eliminates the need for repetitive manual computations or reminders.
How to Add Friends and Manage UPI Circle Groups?
With UPI Circle, you can quickly add or delete members and give them roles so that you can keep track of group payments.
1. Adding Members:
Choose “UPI Circle” from the menu on your UPI app. To add someone, tap “Add Family or Friends” and then type in their UPI ID or scan their QR code. Set their function as a secondary user and decide how much they can spend or what they can do.
2. Taking away members:
Open the Circle settings in your UPI app to take someone out of your UPI Circle. Choose the person you want to remove and then click “Confirm” to finish the process.
How to Handle Group Settings:
- Set Transaction Limits: Set limits on how much you can spend each month or on each transaction to keep control of your spending.
- Keep an eye on things: Please review the group’s transaction history regularly to ensure everyone maintains honesty and accountability.
- Change Permissions: Change responsibilities or access levels as needed, like going from complete delegation to partial delegation.
Limits on the number of users for UPI Circle
The main user of a UPI Circle can add up to five other users. This functionality makes it perfect for families, dependents, or small groups that need to share access to transactions. The UPI Circle lets you add more than one secondary user, which gives you more freedom in handling your money while still keeping control.
How to Make Your Transactions Safer
1. Turn on an app lock for UPI apps
Adding an app lock to your UPI app is a must for keeping it safe. This feature keeps unauthorised people from accessing your banking information and making transactions. Put a lock on your UPI app to keep your money safe from possible dangers.
2. Set up two-factor authentication and use strong UPI PINs
A strong UPI PIN that has a mix of digits makes it less likely that someone will be able to get in without permission. Never use a PIN that is easy to guess or remember. Also, if you can, turn on two-factor authentication. This adds an extra layer of security by requiring more than just your PIN to finish a transaction.
3. Carefully look into requests for transactions
Always double-check the details of a transaction, especially if you have given someone else the power to perform it. If you make a mistake in the amount or the person who gets the money, you could lose money. Verify that the transaction is legitimate before confirming any money.
Conclusion
UPI Circle is a new feature that makes it easier and safer for more than one person to view and manage UPI transactions from the same bank account. The main user keeps full control while allowing trustworthy secondary users to make payments within established restrictions. This is possible because the main user can delegate tasks in full or in part. This feature helps those who don’t have a lot of money join the digital payment system by making it easy and safe for family members, students, and small business teams to participate. UPI Circle makes it quick, obvious, and safe for all users to manage shared payments by using strong security measures and clear transaction rules.
Frequently Asked Questions
1. What will happen if I take someone out of my UPI Circle?
If you remove someone from your UPI Circle, they will no longer be able to use your UPI account to make transactions. This means the person can’t pay or access your account.
2. Is it possible to use UPI Circle for business transactions?
While UPI Circle primarily caters to personal use, it can also find application in certain corporate scenarios. As a car rental owner, you may use UPI Circle to give your drivers the job of collecting payments. This way, they can pay for gas and other expenditures on their own.
3. How do I look at my transaction history in UPI Circle?
Open your UPI-enabled app and go to the transaction history area to see your transaction history in UPI Circle. You can view all the transactions that have occurred in your circle here, including those initiated by other members.
4. Is it possible to use UPI Circle for bank accounts in other countries?
Indian bank accounts and UPI IDs are the intended use cases for UPI Circle. At the moment, it doesn’t work with bank accounts in other countries. There may be better alternatives for payment methods or services for transactions involving foreign accounts.
