• Source:JND
Add as a preferred

UPI Circle:  The National Payment Corporation of India (NPCI) announced 'UPI Circle' a new feature for crores of Unified Payment Interface users. The new feature enables users to add a secondary user to their existing UPI ID and the add-on user can make UPI payments from the primary user's bank account.

What is a UPI Circle?

This is a new feature that allows UPI account holders (Primary Users) to authorize secondary users to make payments with the same account under certain conditions. This implies that a primary user can allow someone else, such as a child or a trusted person, to transact from their UPI-linked account with minimal intervention.

How Does UPI Circle Work?

UPI Circle, also known as delegated payments, allows primary users to authorize secondary users to make payments from their accounts. The primary user can either authorize each transaction individually or set a transaction limit of up to Rs 15,000, of which payment may be made without further approval.

Also Read: Retirement Planning: NPS Or Mutual Fund, Where Can You Build A Larger Corpus by Investing Rs 5,000 Monthly?

Major UPI app initiates testing

Major UPI apps like Amazon Pay, Google Pay, and National Payments Corporation of India (NPCI), have already started testing the 'UPI Circle' feature in closed user groups and are expected to adopt it fully soon. As per media reports PhoneP, UPI's largest third-party application, is also testing the new UPI feature.

Recently Google Pay announced 6 new services for its users including UPI Circle, UPI Voucher, ClickPay QR Scan, Tap and Pay with Rupee Card, and UPI Lite AutoPay

Use cases for the UPI circle

- Parents can allow their college-going or school-going children to spend money on essential items like their routine expenses. It will give control and supervision over his/her spending.

- Another use case may be for elderly individuals who may not be comfortable with digital payments and can let their children handle online transactions, making shopping and other payment needs easier and stress-free.

- Manage household expenses- Busy professionals can delegate home shopping to in-home help, setting approval limits to manage expenses efficiently.

Also Read: World Bank Ups India Growth Forecast To 7% For FY25