UPI Circle Feature; Lets Users Make UPI Payments from Primary Account

The National Payments Corporation of India (NPCI) has introduced a new feature called UPI Circle. This feature allows users to add secondary users to their bank accounts, enabling these additional members to make UPI payments from the primary user's account.

UPI Circle, also known as Delegate Payments, lets users include add-on members on their bank accounts. So, you can now add someone trusted and the secondary users can make UPI payments to any merchant or individual, with funds being debited from your account.

Initially, it will be available on the BHIM App. Google Pay has also announced plans to integrate the UPI Circle feature soon. Other payment platforms like PhonePe and Paytm are expected to roll out by December or early 2025.

The UPI Circle feature will be helpful for individuals like students who either lack their own bank accounts or rely on their parents for online payments. It is also worth mentioning primary users can monitor transactions made by secondary users via their UPI app and bank statements. The primary user can link to a secondary user by scanning a QR code or entering a UPI ID. The daily limit is Rs. 5,000 for the first 24 hours after linking.

The feature operates in two modes: Partial Delegation requires the primary account holder to manually approve each payment request made by the add-on member. The Full Delegation allows the primary user to set a limit of up to Rs 15,000 for the add-on member, enabling them to make payments without manual approval within this limit.