UPI Circle is a new feature that lets you make UPI payments even without a bank account. This means that now all the members of your household, whether they have a bank account or not, can make UPI payments.
This feature has been launched by the National Payments Corporation of India (NPCI) and was introduced by the Reserve Bank of India (RBI) recently.
What is UPI Circle
UPI Circle is a delegated payment feature that allows the primary user to share a payment link with another user.
With this, you can make partial or full payments. For example, parents can share their UPI account with children.
How does UPI Circle work
Primary and secondary users: UPI Circle has two types of users – primary and secondary. The primary user is the one who has a UPI account and can add secondary users to his account.
Full and partial delegation: The primary user can allow secondary users to make full or partial payments.
With full delegation, secondary users can spend up to the set limit without the primary user’s permission.
With partial delegation, the secondary user will have to enter the primary user’s UPI PIN to make payments.
Full delegation
In this, the primary user can allow the secondary user to spend the pre-set spending limit without any approval.
Partial delegation
In this, the secondary user can make transactions, but the primary user will have to enter the UPI PIN for authentication and payment.
What are the rules of UPI Circle
The secondary user will have to provide the app passcode or biometric details for payments.
The primary user can add a maximum of 5 people to his account for payaments.
The monthly spending limit in a UPI circle is fixed at Rs 15,000.
The maximum spend in a day is Rs 5000. This UPI limit will apply to partial delegation.
The cooling period of the UPI circle is 24 hours.
UPI Circle is a useful feature that helps you transfer money easily with your family. It is safe and convenient.