UPI Circle Features & Benefits

Features of UPI Circle

The features of UPI Circle are given below: 

What the UPI Circle Is For

The following advantages were taken into consideration by the government while officially approving UPI Circle: 

1.  Simple access to digital payments for elderly and children without bank accounts.  

1. If those without bank accounts can access UPI through a friend or family member, their reliance on cash can progressively decrease.  

1. If those who don’t have a bank account, can use UPI for transactions, the number of UPI users will rise too. 

Who is a Primary User in UPI Circle?

The primary user is the individual who holds the bank account linked to the UPI Circle. This user acts as the main authority within the circle. 

As the initiator of the UPI Circle, the primary user is responsible for managing all transactions. They have full control over the circle, including deciding who will join as trusted partners. They can grant full or limited access to secondary users based on preference. 

Additionally, the primary user is empowered to set transaction limits, control permissions, manage the UPI PIN, and add or remove secondary users. They can also perform transactions themselves through the established UPI Circle. 

Who is a Secondary User in UPI Circle?

A secondary user is someone added to the UPI Circle by the primary user. 

Unlike the primary user, they don’t need to link their own bank account to participate in the UPI Circle. Typically, a secondary user is a trusted individual such as a family member, friend, or spouse, who is granted access to the UPI Circle by the primary user for conducting transactions. 

How to Link UPI for Secondary Users

To grant secondary users access to the primary user’s UPI ID, follow the steps below: 

• The primary user must first scan a QR code or enter their UPI ID. 

• Then, select the contact from the primary user's contact list to whom they want to provide access to their UPI ID. 

• Once the contact is selected, the linking process will automatically begin. 

Important Note:

Manually entering a contact number is not allowed. For security reasons, the contact must be chosen directly from the primary user’s contact list. 

More detailed steps will be available once the feature is officially launched. 

The Operation of UPI Circle

Primary UPI users can designate a reliable person to handle payment transactions on their behalf by using UPI Circle. The secondary user's authority will determine if this payment is fully made. For people who are unable to handle their funds on their own, it is helpful.  

Let's examine how UPI Circle operates:

1. Using their preferred UPI app, the principal user starts a UPI Circle.  

1. The Circle is updated with a secondary user.  

1. The principal user grants the secondary user permissions and limitations.  

1. The invite to UPI Circle is accepted by the secondary user.  

1. After being added, the secondary user can utilise the UPI Circle to conduct UPI transactions. 

How to Transfer Funds Using UPI Circle

Once the primary user sets up a UPI Circle and the secondary user accepts the invitation, UPI transactions can begin. The primary user must create a UPI PIN for fund transfers and share it with the secondary user. 

To transfer funds using UPI Circle, the secondary user should follow these steps: 

1. Enter the UPI ID or scan the QR code of the recipient. 

1. Input the amount to be transferred. 

1. Optionally, add a remark for the transaction. 

1. Enter the UPI PIN to complete the transaction (for secondary users with full delegation). 

For secondary users with partial delegation, the process includes an additional step: 

1. A notification is sent to the primary user when the secondary user initiates the transfer. 

1. The primary user must then enter the UPI PIN to finalise the transaction (this step is not required for secondary users with full delegation). 

Key Points About UPI Circle

1. App Selection: Users can choose any UPI app to use this service. 

1. User Addition: A primary user can add up to 5 secondary users. 

1. Invitation Acceptance: A secondary user can only accept an invitation from one primary user. 

1. Delegation: The primary user must assign either full or partial delegation to the secondary user from the start. 

1. Transaction Limits: The UPI limits are the same for both full and partial delegation. 

1. Transaction Visibility: Transactions made by a secondary user will appear in both the UPI app and the bank statement. 

1. Dispute Resolution: Online Dispute Resolution (ODR) is available for all UPI transactions. 

Security Features of UPI Circle

1. User Addition: For safety, the primary user cannot add a secondary user via mobile number; only QR code or UPI ID can be used. 

1. Security Measures: All UPI apps must provide security features like app password, fingerprint, or face recognition for secondary users. 

1. Transaction Limits: There is a maximum limit of Rs.5,000 per transaction and a monthly limit of ₹15,000. 

1. Cooling Period: When a secondary user is added, there is a 24-hour cooling period during which the total transfer limit is Rs.5,000. 

1. User Limit: No more than 5 secondary users can be added to the UPI Circle. 

1. Transaction Monitoring: All transactions made by the secondary user will be visible to the primary user. 

NPCI Policies for UPI Businesses

All previous RBI directives for UPI firms on "Harmonisation on Turnaround Time" and customer compensation for unsuccessful transactions using approved systems must be adhered to.  

The facility for online dispute resolution, or ODR, will remain in place.  

Any new notice about UPI Circle must be complied with first, along with any previous UPI requirements. 

Top UPI Apps Offering UPI Circle 

UPI Circle is available on all UPI apps, whether they are bank-specific or third-party applications. Here are some of the leading UPI apps that support UPI Circle transactions: 

1. Amazon Pay

1. BHIM

1. CRED

1. GPay

1. iMobile Pay

1. Paytm

1. PayZapp

1. PhonePe

1. Samsung Pay

1. WhatsApp