UPI Circle lets you share UPI account: How it works
What's the story
The National Payments Corporation of India (NPCI) has launched a new feature called 'UPI Circle-Delegate Payments' on its Unified Payments Interface (UPI) platform. This innovative feature allows primary account holders to share their UPI accounts and transaction rights with secondary users. The aim is to facilitate seamless transactions between trusted individuals such as family members, friends, staff, or acquaintances, who may not have their own bank accounts.
Delegation feature
UPI Circle: A new way to delegate payment authority
The UPI Circle-Delegate Payments feature is designed to enable two individuals to use a single bank account for making UPI payments. This can be particularly useful for families where only one member has a bank account or in situations where multiple family members share a single bank account. The system ensures that the primary user retains control over transaction limits and oversight, enhancing convenience while maintaining security.
Transaction process
How does UPI Circle-Delegate Payments work?
To use the UPI Circle-Delegate Payments feature, the primary account holder must create a mandate for the secondary user. The primary user can choose to delegate payments in full or in part. For full delegation, the secondary user is authorized to make payments up to a certain limit set by the primary account holder. In case of partial delegation, each transaction requires approval from the primary user via a UPI PIN before it can be processed.
User guidelines
Transaction limits in UPI circle
The primary account holder can set a transaction limit for the secondary user. For full delegation, the maximum monthly limit is set at ₹15,000 per delegation with a single transaction cap of ₹5,000. For partial delegation, existing UPI limits apply. The UPI applications offer separate user accounts for primary and secondary users, allowing them to choose their preferred UPI application for transactions.
User addition
Adding a secondary user through UPI Circle
To add a secondary user, the primary account holder must scan the QR code or enter the UPI ID of the secondary user. In future updates, linking will be possible by simply selecting contact numbers from the contact list. A primary user can delegate up to five secondary users, and each secondary user can accept delegation from only one prime user.
User benefits
UPI Circle aims to bridge gap between banked, unbanked users
The UPI Circle-Delegate Payments feature is expected to bridge the gap between banked and unbanked users. It can be especially beneficial in households where only one member has a bank account, allowing other members to transact digitally. The feature also provides an effective way for parents to monitor and manage their children's spending, thereby promoting better financial management within families.