Concept and Functionality of UPI Circle Payments in India www.deekpay.com

In order to enhancedigital payment(math.) genusNational Payments Corporation of IndialaunchedUPI Circle, a delegated payment feature that aims to revolutionise digital payments in India.UPI Circle allows the user's family members to use theUPI paymentsfunctions without involving other bank accounts.UPI Circle aims to reach a larger segment of society that is wary of using their own bank accounts.

Until now, to use UPI payments, everyone needed to link their bank account with the unique UPI ID Related. However, in August 2024NPCI A feature called "UPI Circle" was introduced to help delegate permissions to a single UPI ID; with UPI Circle, multiple people can use a single UPI ID.

What is UPI Circle

NPCI has launched a new payment feature called UPI Circle that allows two or more individuals to share a bank account forUPI Trading.

This feature allows multiple users (e.g., family members, friends, and spouses) to share a UPI ID for secure and delegated transactions. Users can use the shared bank account to make small transactions through UPI.

Primary users have the right to manage access rights, set transaction limits, authorise transactions, etc. For secondary users, transactions can be made even if they do not have a bank account.

Functions of the UPI Circle

Project ExplanationUtilityMultiple users can share one UPI platform for trading. Transaction Limit Monthly Maximum - Rs. 15,000. Maximum limit per transaction - Rs. 5,000. Purpose to facilitate use by unbanked children, adults, senior citizens and disabled persons. Link Select contacts and provide access by scanning QR code or entering UPI contact directory. Application All UPI applications should provide this service. Cost There is no additional cost for this service.Main users of the UPI Circle

The bank account holder is the primary user of UPI Circle. He/she is the highest authority of the Circle.

Primary users initiate circles and manage transactions.

Primary users have the right to decide who they want as their trusted account partners. They have the right to grant full or partial access to secondary users.

They can set restrictions, permissions,UPI PIN Code, add/delete secondary users, etc.

Master users can also trade through created UPI Circle.

Secondary users of UPI Circle

UPI Circle Secondary Users are added to UPI Circle by Primary Users.

Tier 2 users do not need to link their bank account to the added UPI Circle.

Secondary users can be family members, friends, or spouses who can act as trusted persons to gain access from primary users.

UPI Circle Secondary User Privileges

Full authorisation

Under full authorisation, the primary user may authorise the secondary user to initiate and complete UPI transactions up to a predetermined consumption limit. The secondary user may perform UPI transactions without the approval of the primary user.

Partial authorisation

Under partial authorisation, sub-users can initiate a payment request but cannot transfer money directly. The primary user must enter the UPI PIN each time the secondary user initiates a transaction.

How the UPI Circle works

UPI Circle enables Primary UPI Users to authorise Trusted Users to perform payment transactions on their behalf. Such payments can be executed in part or in full, depending on the authorisation of the secondary user. It can help users who are unable to manage their finances independently.

How the UPI Circle works:

The master user launches UPI Circle on the UPI application of their choice. The secondary user joins the Circle. Primary users set limits and authorisations for secondary users. Secondary users accept UPI Circle invitations. Once added, the Secondary User can use UPI Circle for UPI transactions.

How to Link Secondary Users to UPI Circle

Here are the simple steps to link a second user to the UPI Circle:

Scan the QR or enter the second user's UPI ID. Select the contact you want to provide access to from the Contacts list. Once the contact is selected, the second user will be added to the UPI Circle. The second user must accept the invitation, and after accepting the invitation, the second user will be able to start UPI transactions.

How to transfer money using UPI Circle

Once the UPI Circle is initiated by the Primary User and accepted by the Secondary User, the UPI transaction process can begin. The Primary User must set the UPI PIN for the transfer and share it with the Secondary User.

To transfer funds using UPI Circle, the second user can follow these steps:

Enter the UPI ID or scan the beneficiary's QR code. Enter the amount to be transferred. Optionally, add a note to the transaction (optional). Enter the UPI PIN for the transaction (for fully authorised secondary applicants). When a secondary user with partial authorisation initiates a UPI transfer, the UPI application sends a notification to the primary user The Primary User must enter the UPI PIN for the final transfer to be made through the bank account (fully authorised Secondary Users do not need to enter the UPI PIN).

Important matters relating to the UPI Circle

The user can select any UPI application to use this feature. A primary user can add up to 5 secondary users. A secondary user can only accept an invitation from a primary user. The primary member must provide the secondary user with full or partial authorisation from the outset. The UPI limit for full or partial authorisation is the same. Transactions performed by secondary users will be reflected in the UPI application and bank statements. Online Dispute Resolution (ODR) is available for all UPI transactions.

UPI Circle's security features

The following security features have been added to UPI Circle in addition to the various security features provided by NPCI for UPI:

For security reasons, when adding a secondary user, the primary user cannot add a mobile phone number. Only QR code or UPI ID can be used to add users. All UPI applications are required to provide security features such as application password/fingerprint/face recognition for all secondary users. Maximum limit of Rs. 5,000 per transaction and Rs. 15,000 per month. There is a 24-hour cooling-off period when adding a secondary user. During this period, the total amount transferred is capped at Rs. 5,000. UPI Circle can add a maximum of 5 secondary users. The Primary User can also see all transactions made by the Secondary User.

Top UPI applications offering UPI Circle functionality

UPI Circle can be accessed using all UPI apps, whether they are banking apps or third party apps. However, there are some top UPI apps that can be used to transact through UPI Circle, for example:

BHIM Gpay CRED Paytm PhonePe Amazon Pay iMobile Pay PayZapp Samsung Pay Whatsapp

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