NPCI Launches ‘UPI Circle’ for Secure Payments Among Trusted Users

The National Payments Corporation of India (NPCI) has unveiled a new feature called ‘UPI Circle’ on the Unified Payments Interface (UPI) platform, allowing primary UPI account holders to securely delegate payment responsibilities to trusted secondary users. This feature aims to enhance convenience and security in digital transactions by enabling primary users to link their UPI accounts with secondary users, who can then make payments on their behalf within pre-defined limits.

What is UPI Circle?

‘UPI Circle – Delegate Payments’ is a feature where a UPI user (primary) can establish a secure link with trusted secondary users on their UPI app for partial or full payment delegation. Introduced during the Reserve Bank of India’s August MPC meeting, this feature allows the primary user to set specific transaction limits for the secondary user, thereby expanding the reach and usage of digital payments.

How UPI Circle-Delegate Payments Work

Primary User: The account holder who initiates and controls the delegation.

Secondary User: A trusted individual granted either partial or full access to the account for making payments.

Types of Delegation

Full Delegation: The secondary user is authorised to complete transactions within set limits without further approval.

Partial Delegation: The secondary user initiates transactions, but the primary user must authenticate and finalise them using their UPI PIN.

UPI Circle: NPCI Guidelines

• UPI apps must provide independent user journeys for both primary and secondary users, who can choose their UPI app.
• Security protocols such as mandatory app passcode/biometrics are required for secondary users.
• Primary users can delegate up to five secondary users, while a secondary user can only accept delegation from one primary user.
• For full delegation, a monthly limit of ₹15,000 and a per transaction limit of ₹5,000 are set. During the initial 24-hour cooling period, a daily transaction limit of ₹5,000 is enforced.

Benefits and Considerations

UPI Circle enhances convenience by allowing payments on behalf of dependents while maintaining security through controlled access. It is particularly useful for managing payments for children or elderly dependents, reducing fraud risk, and ensuring budget adherence. The feature also opens up possibilities for micro-communities within gig economies, enabling easy real-time payments. However, primary users must carefully manage and restrict delegation to trusted individuals.