NPCI UPI feature

UPI Circle Launched: What It Is, How It Works, and Key Details

The National Payments Corporation of India (NPCI) has introduced “UPI Circle,” a new feature aimed at enhancing the accessibility of digital payments. This feature allows primary users to add family members, friends, or even employees as secondary users, enabling them to make UPI transactions from the primary user’s bank account. UPI Circle is designed to extend the convenience of UPI to individuals who may not have their own bank accounts or those who are cautious about using digital payments. In this article, we’ll break down what UPI Circle is, how it works, its benefits, and how to set it up.

What Is UPI Circle?

UPI Circle is a new feature that allows a primary UPI user to delegate payment authorizations to secondary users. These secondary users can conduct transactions using the primary user’s bank account within pre-set limits, making it easier for families, friends, and businesses to manage payments. The feature is especially beneficial for individuals who may not have access to their own bank accounts or are not comfortable with digital payments.

This feature is aimed at empowering secondary users, such as children, senior citizens, or employees, to perform transactions without needing their own UPI account, all while maintaining control over spending limits and approvals.

Key Features of UPI Circle

The NPCI has detailed several key features of UPI Circle, making it a flexible and secure option for delegated digital payments:

1. Primary and Secondary User Setup:

   • The primary user can add up to five secondary users (such as family members or friends) to their UPI Circle.
   • Secondary users can make transactions from the primary user’s account within pre-set limits.
   • A secondary user can only be added to one UPI Circle at a time.

2. Spending Limits and Approval Settings:

   • The primary user can set spending limits for secondary users, ensuring control over the transactions.
   • There are two options for transaction control:
     • Spend With Limits: Secondary users can make payments within defined limits without requiring further approval.
     • Approve Every Payment: The primary user must approve each transaction before it is completed.

3. Transaction Limits:

   • A maximum monthly limit of ₹15,000 has been set for UPI Circle transactions.
   • No single transaction can exceed ₹5,000.
   • For the first 24 hours, secondary users are restricted to a ₹5,000 limit.

4. Security Measures:

   • The primary user can monitor all activity of secondary users and adjust or revoke access at any time.
   • The option to approve every payment adds an additional layer of security for cautious users.

How Does UPI Circle Work?

UPI Circle works by allowing primary users to grant secondary users limited access to their UPI accounts. This makes it easy for financially dependent individuals, such as children or elderly parents, to conduct digital transactions without needing their own bank account.

Here’s how it works step-by-step:

1. Primary User Adds a Secondary User:

   • The primary user can add a secondary user by entering their UPI ID, scanning their UPI QR code, or selecting a contact from their phone.

2. Set Permissions:

   • The primary user selects either “Spend With Limits” or “Approve Every Payment” as the permission level for the secondary user.

3. Secondary User Receives a Notification:

   • The secondary user receives a request notification, which they must accept to gain access.

4. Transaction Process:

   • Once the setup is complete, the secondary user can start making payments from the primary user’s UPI account.
   • The primary user can review and approve transactions (if set) or monitor activity in real-time.

5. Revoking Access:

   • The primary user can revoke a secondary user’s access at any time through the UPI Circle settings.

Benefits of UPI Circle

UPI Circle provides several key advantages, particularly for families and small businesses:

• Convenience for Families: Parents can easily manage allowances or payments for children, without having to transfer money to another account.
• Elderly Support: Senior citizens hesitant to adopt digital payments can still enjoy the benefits through a trusted family member’s account.
• Business Efficiency: Small business owners can allow employees to manage petty cash or small business transactions without exposing the entire account.
• Security and Control: With spending limits and approval settings, primary users maintain full control over the account, reducing the risk of unauthorized transactions.

How to Set Up UPI Circle

Setting up UPI Circle is simple and can be done within the UPI app. Follow these steps:

1. Access the UPI Circle Menu:

   • Open your UPI app and navigate to the UPI Circle section.

2. Add Secondary Users:

   • Tap “Add Family or Friends” and enter the secondary user’s UPI ID, scan their QR code, or search your phone contacts.

3. Set Permissions:

   • Choose between “Spend With Limits” or “Approve Every Payment” to control how the secondary user can access the funds.

4. Secondary User Acceptance:

   • The secondary user will receive a notification to accept the request. Once accepted, they can start using the primary user’s UPI account.

5. Managing Permissions:

   • The primary user can add or revoke secondary users at any time and adjust spending limits.

Conclusion:

The UPI Circle feature by NPCI is a convenient and secure way to allow secondary users like family members, friends, or employees to make UPI transactions without needing their own bank account. NPCI UPI feature, It offers flexible control over spending limits, approval settings, and monitoring, making it an ideal tool for managing payments while ensuring security. Families, businesses, and individuals can benefit greatly from this new feature, enhancing their digital payment experience.

FAQs :

1.What is the maximum transaction limit in UPI Circle?

A. The maximum monthly limit is ₹15,000, with no single transaction exceeding ₹5,000.

2.How many secondary users can be added to UPI Circle?

A. A primary user can add up to five secondary users.

3.Can a secondary user belong to more than one UPI Circle?

A. No, a secondary user can only be part of one UPI Circle at a time.

4.What happens if the secondary user exceeds the limit?

A. If the transaction exceeds the set limit, it will be declined unless the primary user approves it.

5.Can the primary user revoke access for a secondary user?

A. Yes, the primary user can revoke access at any time.

6.What are the approval settings for transactions?

A. There are two options: “Spend With Limits” and “Approve Every Payment,” allowing the primary user to manage transaction approvals.

7.Is UPI Circle safe to use?

A. Yes, UPI Circle includes security features like transaction monitoring and approval options to ensure safe usage.

8.Who benefits most from UPI Circle?

A. Families, senior citizens, small business owners, and individuals who want to delegate payments safely benefit the most from this feature.

9.Does the secondary user need a bank account?

A. No, the secondary user can use the primary user’s UPI account without needing their own bank account.

10.How can I monitor the transactions of a secondary user?

A. The primary user can monitor all transactions through the UPI app, adjusting limits or revoking access if needed.

NPCI UPI feature

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