UPI Circle Delegate Payments launched: Who can use UPI Circle, transaction limits, other key features

The governor of the Reserve Bank of India (RBI) introduced UPI Circle, allowing UPI users to authorize payments to their designated secondary users. National Payments Corporation of India (NPCI) stated in a press release dated August 28, 2024, that these payment solutions aim to improve the inclusivity, security, and efficiency of India's digital payment system.

UPI transaction limit for income tax payments, other tax payments hiked to Rs 5 lakh from Rs 1 lakh: RBI

According to the NPCI press release, roughly 6% of UPI users conduct several transactions, primarily on behalf of other people. This functionality will give the primary user more convenience when making delegated payments while maintaining the same level of control.

The UPI Circle function now offers a payment option for those users who choose not to use UPI because they are hesitant to make digital payments or are not enabled to do so. Some examples include a parent providing expenses to his college kid, a senior citizen who is wary of digital payment, a busy individual who wants to delegate household expenses, or a business Owner who doesn’t want to give petty cash to their staff.

What is UPI circle?

UPI Circle is a new feature that allows a primary user to authorize a secondary user to make UPI transactions from the primary user's bank account, with set transaction limits.

What is full delegation

In full delegation, the primary user authorizes a trusted secondary user to initiate and complete UPI transactions within specified spending limits.
Under full delegation, each delegation is limited to a maximum of Rs 15,000 per month and a maximum of Rs 5000 each transaction.

What is partial delegation

According to the NPCI press release dated August 28, 2024, “In partial delegation, the primary user authorizes initiation of payment requests from secondary users. The primary user then completes the UPI transaction with UPI Pin. A primary user can delegate to up to 5 secondary users and a secondary user can accept delegation from only one primary user.”
Existing UPI limits shall be applicable in case of partial delegation.

Who is a primary user
An UPI user who is delegating the UPI authentication to make payment to a secondary user
Who is a secondary user
An UPI user who will be performing UPI payments with appropriate authorization of the primary user. A secondary user is an individual with or without having a bank account linked on UPI.

Important FAQs

Who can use UPI Circle?

Primary user who has an UPI account can set up UPI Circle for secondary users like their trusted contacts.

What are the main benefits of UPI Circle?

The main benefits include broadening UPI usage across different demographics, providing financial access to those without bank accounts, and offering supervised spending for those who need it.

How does the authorization control work?

The primary user has full control over who can access their account for UPI transactions. They can set transaction limits and monitor all activities.

Can I set a limit on how much the secondary user can spend?

Yes, under Full Delegation, the primary user can specify the maximum amount that the secondary user can spend per month.

Do secondary users need their own bank accounts to use this feature?

No, this feature is particularly useful for those who may not have their own bank accounts.

Can I monitor the transactions made by the secondary user?
Yes, the primary user can monitor all activities made through the delegated access.

How does this feature help with family expense management?
It makes it easier for family members or dependents to manage expenses without requiring access to the primary user's entire bank account.

Can secondary users make all types of UPI transactions?

The secondary user under partial delegation would only be allowed to make payments to merchants and people. They will not be able to set UPI autopay or lite transactions.

Can I set different transaction limits for different secondary users?
Customized monthly limits for each secondary user might be possible under full delegation.

Is this feature available on all UPI apps?
Check with your preferred UPI app or bank to see if they offer this feature.