UPI Circle : Now, even if you don’t have a single rupee in your bank account, you can still make UPI payments. This may sound strange, but it’s about to become a reality.
The National Payments Corporation of India ( NPCI) has launched a new feature called ” UPI Circle ,” through which users can authorize trusted individuals to make payments from their bank account.
What is UPI Circle?
A UPI Circle is a kind of “trust circle” where you allow your family or trusted friends to make transactions using your UPI ID. The advantage of this is that even if you don’t currently have a balance in your bank account, the other person can still make transactions up to the limit you set .
For example, if you have given a limit of Rs 2,000 to your child, spouse or employee, they will be able to make payments up to that amount without your repeated approval.
How will this feature work ?
There are two types of users in this feature –
- Primary User: Who shares his account and UPI access.
- Secondary User: Who is allowed limited transactions from that account.
Secondary users can make payments via UPI , but each transaction will be subject to certain limits and conditions. Primary users can also mandate their approval for each transaction .
How to activate UPI Circle feature ?
If you use the BHIM UPI app, then activating this feature is very easy.
- Open BHIM UPI app on your mobile .
- Log in with the registered mobile number.
- Now select the option of ‘ UPI Circle’ .
- Add the person you want to add using phone number, UPI ID or QR code scan.
- Then decide the maximum amount he can pay.
- If you want , choose the option of requiring your approval for every transaction .
- Finally enter your UPI PIN and submit .
That’s it ! Your UPI Circle is now ready, and the other person can make transactions within your set limit.
Under what circumstances will it be most beneficial?
This feature will be especially beneficial for those who are unable to make direct digital payments or who do not have their own bank account.
- Parents: You can provide payment facility to your children by setting a limit for spending.
- Senior Citizens: Those who are afraid of digital payments can allow their children to make the payments.
- Business Owners: You can give your drivers or staff limits for fuel, trip expenses, etc.
- Household Users: Busy office couples can allow limited transactions to their maid or delivery person for household work.
What will be the transaction limit?
- ₹5,000 per transaction per device
- Monthly limit of ₹15,000 per device
- ₹2,000 limit in the first 24 hours after linking a new device
- Up to 5 devices/software can be linked at a time
Why is this feature important?
Even today , many people rely on cash because they either don’t have a bank account or aren’t comfortable with digital payments. UPI Circle will provide a medium to connect these individuals to digital payments . This will further promote a cashless economy and simplify payment management within families and small businesses .
