Since the introduction of UPI (Unified Payments Interface), managing financial transactions has become significantly easier for many of us. Recently, the government has made strides to further enhance digital payments by introducing a new feature called UPI Circle. Launched by the National Payments Corporation of India (NPCI), this new functionality aims to assist households who value the concept of sharing, especially those with members who may not have their own bank accounts.
In many households, elderly members, children, and homemakers often do not possess personal bank accounts, making them reliant on others for making payments. The UPI Circle feature is designed to enable these individuals to participate in transactions through a shared system. Let’s explore what this feature is and how it can benefit you and your family.
What is the UPI Circle Feature and How Can You Benefit?
The UPI Circle feature allows you to connect your UPI account with your family members. It acts as a delegated payment system, meaning that you can share your primary UPI account with others in your circle. With this feature, the primary account holder can manage and control secondary users that are linked to their account. There are two types of delegation options available: Full Delegation and Partial Delegation.
Understanding Delegation Types
1. **Full Delegation:** Under this setup, secondary users can make payments without needing prior approval from the primary account holder, up to a limit.
2. **Partial Delegation:** In this arrangement, secondary users can send payment requests which will only be processed once the primary account holder grants approval. All transactions require the use of a UPI PIN for security reasons.
According to NPCI, users can utilize any UPI-supported app for this feature. However, all secondary users must use biometric authentication or a passcode within the app they are using. For full delegation, each individual will be assigned a monthly transaction limit of ₹15,000. However, they can only spend ₹5,000 in a single transaction.
How to Enable the UPI Circle Feature
If you are a primary user and wish to activate this feature for secondary users, you will need to scan the QR code or enter the UPI ID of the secondary user. After that, the delegation process will commence, allowing you to choose the level of control you wish to assign—either full or partial. Currently, this feature may not be widely available to all users, but it is expected to be rolled out soon.
Benefits of UPI Circle Feature
| Benefits | Description |
|---|---|
| Convenience | Allows family members to make payments without having their own bank accounts. |
| Control | Primary account holder maintains control over spending and approval of transactions. |
| Flexibility | Adaptable limits based on family needs; can choose between full or partial delegation. |
| Security | Transaction approvals via UPI PIN and biometric authentication enhance security. |
In summary, the UPI Circle feature is set to revolutionize how families manage digital payments. This innovative functionality not only promotes financial inclusivity but also empowers families to share resources efficiently. Keep an eye out for this feature as it becomes available, and prepare to maximize the potential of your UPI experience!
