NPCI unveils UPI Circle to allow account holders to add secondary users; check security features, benefits and more

The National Payments Corporation of India (NPCI) has unveiled a groundbreaking feature called UPI Circle, designed to expand digital payment accessibility. This innovative addition to the Unified Payments Interface (UPI) system allows primary account holders to include family members and friends as secondary users, granting them the ability to conduct transactions within specified limits using the primary user's bank account.

UPI Circle is particularly beneficial for individuals without personal bank accounts or those hesitant about digital transactions. The NPCI stated, "The feature is aimed at empowering users who might be financially dependent."

Key features and security measures

The new system introduces delegation capabilities, enabling primary users to authorise secondary users, such as family members or employees, to perform transactions directly from the primary account. This feature is expected to be especially useful for parents managing children's allowances, senior citizens cautious about digital payments, and business owners handling petty cash for staff.

To ensure security, UPI Circle incorporates various control measures. Primary users can set spending limits or opt to approve each transaction individually. The "Spend With Limits" option allows transactions within predefined boundaries without further approval, while "Approve Every Payment" offers more stringent oversight.

The NPCI has established a maximum monthly limit of ₹15,000 for secondary users, with single transactions capped at ₹5,000. Additionally, there's a ₹5,000 limit for the first 24 hours of use.

An NPCI representative explained, "About 6 per cent of UPI users make a large number of transactions, mainly because they also make transactions on behalf of others. This feature will allow the primary user to have the same control while offering more convenience when making delegated payments."

Setting Up UPI Circle

• To activate this feature, users can follow a simple process:
• Access the UPI Circle menu and select "Add Family or Friends".
• Add secondary users via UPI ID, QR code scan, or phone contacts.
• Set permissions by choosing between "Spend With Limits" or "Approve Every Payment".
• Secondary users receive and accept the invitation.

Once accepted, secondary users can begin making payments.

It's worth noting that primary users can add up to five secondary users, while secondary users can only be linked to one primary account. Primary users retain the ability to revoke access at any time, ensuring full control over their accounts.