UPI Circle

UPI Circle is a new initiative that was introduced by the National Payments Corporation of India (NPCI) in August 2024. Usually, a UPI ID has been unique to only one user who links it with their bank accounts. However, with this new initiative, bank account holders can share their UPI ID with their trusted family members.

UPI Circle will make digital payments easier for senior citizens, students, and those who do not hold a bank account as they will be included in their family’s circle of trusted contacts. Helping them make payments simpler while reducing the complexity of using net banking or using cash as an alternative to UPI payments.

Table of Contents:

• ⇾ Understanding UPI Circle
• ⇾ Features of UPI Circle
• ⇾ Types of Users for UPI Circle
• ⇾ UPI Circle Payment Delegation
• ⇾ Steps to Link UPI for Secondary Users
• ⇾ Steps to Transfer Money with UPI Circle
• ⇾ Security Features of UPI Circle
• ⇾ Key Points to Remember on UPI Circle
• ⇾ UPI Apps Providing UPI Circle Facility
• ⇾ How to Enable UPI Circle Feature
• ⇾ UPI Circle Google Pay
• ⇾ UPI Circle Paytm
• ⇾ Frequently Asked Questions

Understanding UPI Circle

The UPI Circle, allows multiple individuals to share a single UPI ID, helping to simplify digital payments for families, friends, and dependents who have no bank account. The system revolves around two main roles the ‘Primary User’ and the ‘Secondary User’. Where the Primary user owns the bank account and allows the Secondary user to use their UPI ID and linked bank account for various transactions.

Furthermore, the Primary user has the authority to give full access to their account with a transaction limit of ₹15,000 or they can give partial access. With partial access, the Secondary user will require the approval of the Primary user for every transaction that they are about to make. Ensuring that all the payments are monitored and controlled by the account holder.

Features of UPI Circle

UPI Circle offers individuals without a bank account to have access to finances for various transactions. It provides various features that make it a convenient choice for various individuals, these are:

• Accessibility: The UPI Circle allows multiple users to share a single UPI ID for transactions, making digital payments more accessible to families and dependents.
• Transaction Limit: The monthly limit can be set for up to ₹15,000 and the per transaction limit will be ₹5,000.
• Purpose: The system will help to provide easy access to digital payments for children, adults, elderly citizens, and physically handicapped people without bank accounts.
• Linking: Secondary users can be linked by scanning a QR code or choosing a UPI contact and providing access.
• UPI Apps: UPI Circle will be available on all UPI apps, ensuring widespread accessibility.
• Fee: No additional fees are required to use this service, making it cost-effective for users.

Types of Users for UPI Circle

There are two types of users for UPI Circle, the Primary user and the Secondary user. Here is a description of the roles of each user:

• Primary User of UPI Circle: The ‘Primary User’ is typically the bank account holder who controls the UPI ID. They can give payment authority to one or more ‘Secondary Users’ by granting them access to the shared UPI ID. The ‘Primary User’ can set specific access limits, such as monthly transaction caps, and can choose between full or partial delegation.
• Secondary User of UPI Circle: The ‘Secondary User’ is the individual who is granted access to the Primary User’s UPI ID. They can initiate payments and transactions within the limits set by the ‘Primary User’. Importantly, the ‘Secondary User’ does not need to have their own bank account linked to UPI, making it accessible to a broader range of people.

UPI Circle Payment Delegation

The ‘Primary User’ has the authority to give full or partial delegation to the ‘Secondary User’. Where they can set a limit of up to ₹15,000 per month or set the transaction to be authorised by them.

• Full Delegation: The Primary User sets a transaction limit of up to ₹15,000 per month, and ₹5000 per transaction, allowing the Secondary User to make payments freely within that limit. This is ideal for users who trust the Secondary User to manage small payments independently.
• Partial Delegation: The Primary User retains complete control, requiring their approval for each transaction initiated by the Secondary User. This ensures that all payments are monitored and authorised before being processed.

Steps to Link UPI for Secondary Users

Secondary Users can link their UPI to the primary user in very simple steps, but before following the steps, there are some things you need to prepare, these are:

• The ‘Primary Users’ should have a bank account that is linked to the UPI Apps of your choice.
• Primary Users should have the Secondary User’s mobile number saved in their mobile phone.
• The ‘Secondary Users’ should also have a valid UPI ID.

The steps to link with the UPI Circle are:

Step 1: The Primary User should scan the Secondary User’s QR code.

Step 2: The Primary User should then open the UPI Circle page.

Step 3: Then scan the Secondary User’s QR and verify their contact details.

Step 4: The Primary User can then set the access limit on how to approve payments.

Step 5: The Secondary User will then receive a request to join the UPI Circle and once they accept it they can start making transactions with the Primary User’s UPI ID.

Steps to Transfer Money with UPI Circle

UPI Circle allows both Primary and Secondary Users to transfer money conveniently, either through partial or full delegation. Here’s how the process works:

Step 1: Secondary User Initiates the Payment Request

• When at a store, the Secondary User scans the merchant's QR code.
• They enter the payment amount and any additional details, including an optional note to the Primary User.
• The Secondary User then sends the payment request to the Primary User, who will receive all the necessary details to approve or complete the payment.
• The Secondary User can track the status of their payment request on the UPI Circle page to know whether it's in progress or completed.

Step 2: Partial Delegation: Primary User Approves and Completes Payment

• The Primary User receives a notification with a unique sound alerting them of the payment request.
• Upon opening the request, the Primary User taps "Continue to Pay," reviews the amount, and then confirms the payment.
• The Primary User enters their UPI PIN to complete the transaction on behalf of the Secondary User.

(Note: The Primary User must accept and process the payment request within 10 minutes.)

Step 3: Full Delegation: Secondary User Makes Payment

• If the Secondary User has been granted full delegation, they can directly make payments up to the approved monthly limit without needing the Primary User’s approval.
• The maximum amount allowed for full delegation is ₹15,000 per month, with a single transaction limit of ₹5,000.
• These payments can be completed without a PIN, provided the Secondary User has enabled app lock (for instance, on Google Pay).

Step 4: Confirmation of Payment

• After the payment is completed, whether through partial or full delegation, the Secondary User will see a success page on their UPI app, confirming the transaction.

Security Features of UPI Circle

Security is a major concern when it comes to financial transactions, here are the security features of UPI Circle:

• Restricted Addition of Secondary Users: For safety, Primary Users can only add Secondary Users via QR code or UPI ID. Direct entry of mobile numbers is not permitted, reducing the risk of unauthorised additions.
• Mandatory Security Features: All UPI apps must enforce app passwords, fingerprint recognition, or face recognition for Secondary Users, ensuring that only authorised individuals can access and use the UPI Circle features.
• Transaction Limits: To mitigate risks, there is a maximum transaction limit of ₹5,000 per transaction and a monthly cap of ₹15,000 for Secondary Users.
• Cooling Period: When a Secondary User is added to the UPI Circle, a 24-hour cooling period is enforced. During this time, the total transaction limit is restricted to ₹5,000 to prevent potential misuse.
• User Limit: A maximum of five Secondary Users can be added to a UPI Circle, limiting the number of people who can access the shared UPI ID.
• Transparency in Transactions: All transactions made by Secondary Users are visible to the Primary User, allowing them to monitor and manage financial activities easily.

Check more on UPI Transaction Limits from the linked page.

Key Points to Remember on UPI Circle

The important facts to remember about UPI Circle are as follows:

• App Flexibility: Both Primary and Secondary Users can use any UPI app as per their preference for transactions.
• Security Requirements: Secondary Users must have biometric or app-password protection for added security.
• User Limits: A Primary User can grant access to up to 5 Secondary Users, while a Secondary User can only have one Primary User.
• Transaction Limits: Secondary Users can make transactions up to ₹5,000 per transaction and ₹15,000 per month. For partial delegation, existing UPI limits apply.
• Authorization Control: Primary users decide between full or partial authorization for secondary users and retain full control over their UPI usage.
• Initial Limits: Newly linked UPI accounts have a 24-hour transaction limit of ₹5,000.
• Transaction Visibility: Primary users can view all transactions and account statements of secondary users.

UPI Apps Providing UPI Circle Facility

Several UPI apps are now offering the UPI Circle feature, allowing users to share a single UPI ID with others for seamless transactions. Helping people make digital payments more accessible and convenient, particularly for those who may not have their bank accounts. The UPI Apps offering the UPI Circle facility are:

• Google Pay
• Paytm
• PhonePe
• BHIM App
• Amazon Pay

Check more on UPI credit card payments from the linked page.

How to Enable UPI Circle Feature

Every UPI App will have different processes on how to add your family or trusted friends to your UPI Circle. Given below are the different UPI Apps along with the steps on how you can add to your UPI Circle.

UPI Circle Google Pay

To add a Secondary User to UPI Circle Google Pay, the Primary User must have an active bank account linked to Google Pay, and the secondary user's mobile number must be saved in the Primary User's contact list.

Step 1: The Secondary User opens their UPI app and accesses their QR code from the profile section. They can show or share this QR code with the primary user.

Step 2: The Primary User taps on their profile picture at the top right of the screen to access the UPI Circle page. From there, they can select the option to scan or upload the Secondary User's QR code.

Step 3: The Primary User scans the Secondary User's QR code and verifies the contact from their contact list to ensure it's trusted.

Step 4: The Primary User can then choose between two delegation options:

• Partial Delegation: The primary user approves each payment individually.
• Full Delegation: The primary user sets a monthly spending limit, allowing the secondary user to make payments up to that limit without further approval.

Step 5: The Secondary User receives a notification and must accept the Primary User's request within 30 minutes to join the UPI Circle.

UPI Circle Paytm

To give a Secondary User access to your UPI ID on Paytm, follow the steps below. This process allows the Primary User to delegate payment authority while maintaining control and security.

Step 1: The Primary User starts by scanning the Secondary User's QR code or entering their UPI ID into the Paytm app. The option to manually enter a contact number is restricted for security reasons.

Step 2: From the contact list saved on the Primary User’s device, select the contact to whom you wish to provide access. Only contacts saved in your device can be selected to ensure that the Secondary User is trusted.

Step 3: Once the contact is selected, the linking process will start automatically. This ensures that only verified contacts are given access to the UPI ID.