The National Payments Corporation of India (NPCI) has announced the new UPI Circle feature. It allows users to add a secondary user to their bank account. These add-on users can make UPI payments from the primary user’s bank account. Here are the details.
UPI Circle Feature: Explained
UPI Circle, also called Delegate Payments, is a feature that enables users to have add-on members on their bank accounts. These add-on members can easily make UPI payments to any merchant or person. The funds are debited from the original user’s bank account. The feature works in two ways:
- Partial Delegation: The primary account holder will receive a new request each time the add-on member tries to make a UPI payment. These requests will have to be approved manually.
- Full Delegation: The primary account holder can set a limit of up to Rs 15,000 for the add-on member, after which that member can make UPI payments without any manual approval within the prescribed limit.
Note that the add-on member needs to have a separate phone number for the feature to work.
The UPI Circle feature aims to introduce seamless digital payments for users who either don’t have their own bank account or are dependent on others for online transactions.
The best application of the UPI Circle feature is for parents, who can now encourage their kids to make UPI payments. Parents will have complete supervision over their kids by choosing between partial or full delegation, ensuring financial discipline.
The feature is also helpful in the corporate world, where employees can have pre-defined UPI limits using UPI Circle. Hence, employees can make official purchases without having to deal with reimbursements with the finance department. UPI Circle has endless applications, which is why the NPCI and the RBI have approved it.
The UPI Circle feature will first be available on the BHIM App. Google Pay has also confirmed that this feature will soon be coming to the platform. Other popular payment apps, such as PhonePe and Paytm, are expected to roll out this feature by December or early 2025.
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