UPI Circle: Everything You Need to Know

NPCI BHIM Services Limited (NBSL), a subsidiary of the National Payments Corporation of India (NPCI), has announced the introduction of UPI Circle. This feature enables users to safely delegate UPI access to trusted individuals, such as parents, children, or other family members, while maintaining security.

What is UPI Circle?

UPI Circle is a service that allows a payer to extend authority to transact from their UPI account to an individual with certain constraints. It allows a secondary user to conduct transactions from the payer's account with minimal interaction and appropriate risk mitigation.

A primary user, or UPI account holder, can authorize up to five secondary users to utilize their account to make UPI payments using UPI Circle. In the new BHIM app, the primary user must use their UPI PIN to validate each transaction that is started by the secondary user. The new BHIM app enables the principal user to view all secondary user transactions in real time, promoting transparency and oversight.

Who is the Primary User?

An UPI user is delegating the UPI authentication to make payment to a secondary user.

Who is this Secondary User?

A secondary user is a UPI user who, with permission from the principal user, will make UPI payments. A secondary user is an individual who has or does not have a bank account linked to UPI.

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Features of UPI Circle

Approve every payment.

Allow your loved ones, friends, and trusted individuals permission to request payments, but keep final say by using your UPI PIN on BHIM to approve each transaction.

Spend with limits.

Allow someone to make payments up to a specified limit without your immediate permission. This option is ideal for trustworthy individuals who manage funds for elderly family members or provide allowances, as it streamlines financial transactions for others while keeping predefined spending limits.

Advantages of UPI Circle

Complete control of BHIM.

UPI Circle allows you to choose the level of control you want from approving each transaction and setting spending limitations or allowing you to split resources based on your preferences and needs.

Efficient Financial Management

UPI Circle makes it easier for family, friends, and other trusted people to manage household budgets, allowances, and other financial obligations. It provides a practical solution for families and caregivers, providing effective and orderly financial management.

Encourage trust and independence.

Delegate financial freedom to trustworthy people with confidence. UPI Circle is great for managing shared expenses or helping family members with money because it provides financial independence without sacrificing control.

BHIM blends user-friendliness with strong security. Whether you're a parent, partner, or caregiver, this function makes financial management easier while protecting your cash.

UPI Circle Delegation-

Full Delegation

In full delegation, the secondary user has entire access to make transactions without the principal user's prior approval. This category is excellent for trusted users, such as family members or critical colleagues, who value efficiency and independence. Transactions are streamlined and expedited, increasing their efficiency. It decreases reliance on the primary user by allowing others to manage tasks autonomously.

Partial Delegation

In partial delegation, the primary user establishes certain boundaries or requests approval for each transaction made by the secondary user. This ensures tighter control while maintaining flexibility. It guarantees that spending is well-managed and within bounds. It promotes transparency and security by allowing each transaction to be readily tracked.

How to Use UPI Circle on BHIM

• You can download the new BHIM app from the Play Store or App Store.
• Now, open the BHIM app
• Click on the UPI Circle feature.
• Click on 'Add Secondary User'
• Enter their UPI ID
• Now, scan the QR code.
• Select the delegation type.
• The secondary users will receive a request.
• Once they accept the invitation, they can start making payments using the primary user's account and request that their primary approve payments in real time using the BHIM app.

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UPI Circle Benefit for Kids

Parents can enable their children to spend money on daily necessities such as stationery, travel, and food. UPI circles provide them with real-time consent for their children's spending.

UPI Circle Benefit for Senior Citizens

Senior citizens can make online payments without worrying about security because the payment will be approved by a family member.

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