Google Pay to soon offer UPI Circle: What is it
What's the story
Google Pay is preparing to soon integrate UPI Circle, a new feature announced by the National Payments Corporation of India (NPCI) earlier this month. The Reserve Bank of India (RBI) has approved this initiative, which allows primary account holders to add family members for transactions using their bank accounts. Currently, this feature is being tested with a select group of GPay users in India.
Feature benefits
UPI Circle: A boon for shared financial management
The UPI Circle feature is designed to facilitate two individuals in using a single bank account for digital payments. This feature aims to simplify digital transactions for people who may not have their own bank accounts or prefer not to manage payments themselves. The primary user must explicitly grant either full or partial transaction authority to the secondary user, defining the extent of their control over financial activities.
User control
Transaction limits and approval process in UPI circle
In the UPI Circle, the primary user can set a monthly transaction limit of up to ₹15,000 for the secondary user. This feature ensures that all transactions remain within a pre-determined threshold. Additionally, each payment request initiated by the secondary user must be approved by the primary user within 30 minutes of being sent, maintaining control over financial activities.
Setup process
How to set up and manage UPI Circle on GPay
To utilize the UPI Circle feature on Google Pay, primary users need an active bank account or other payment methods linked to their digital payment service provider. The secondary user's phone number should be saved in the primary user's contact list, and they must have a valid UPI ID. To join the UPI Circle, secondary users can share their QR code with the primary user for scanning and adding them to their circle.
Payment delegation
Delegation types and payment methods in UPI Circle
In the UPI Circle, primary users can choose between approving every payment (partial delegation) or setting a monthly limit (full delegation). For each payment request from the secondary user under partial delegation, primary users receive a notification and must approve it within 10 minutes. Under full delegation, primary users can set a monthly limit for secondary users to make multiple transactions without further approval.
Transaction security
Transaction process and security measures in UPI circle
Once the primary user sends an invitation, the secondary user can join the UPI Circle by accepting it. They can then initiate payment requests for approval by the primary user. Secondary users can track their payment request status in real-time within the UPI Circle page. To ensure secure transactions, secondary users are required to enable app lock for Google Pay, preventing unauthorized access.