UPI Circle is an innovative feature introduced by the National Payments Corporation of India (NPCI) in August 2024. The feature allows multiple users to share the same UPI ID, allowing them to transact using the same bank account. This is especially useful for families, friends, or trusted individuals, making digital payments more accessible and secure. This blog will explain UPI Circle in detail, including how it works, its benefits, and its potential impact on digital payments in India.
What is UPI Circle?
UPI Circle is a new feature launched by the National Payments Corporation of India (NPCI) in August 2024. This feature allows users to share a single UPI ID and allow multiple individuals to transact from the linked bank account. Through this feature, a primary user can allow trusted individuals such as a family member, friend, or spouse to use the UPI ID. Thus, without having separate bank accounts, multiple people can transact from the same account through UPI Circle.
How does UPI Circle work?
The way UPI Circle works is very simple and is based on two types of delegation: Full Delegation and Partial Delegation.
Primary User:
- The primary user is the one in whose name the bank account is held and who has created the UPI ID.
- This user fully controls the account and can set transaction limits for other (secondary) users.
Secondary User:
- The secondary user is the person who is allowed by the primary user to use the UPI ID.
- The secondary user may or may not have his own bank account.
Benefits of UPI Circle
- Simplicity for all: UPI Circle is specially designed for those who do not have their own bank account or who find it difficult to understand digital payments. Now these people can also make digital payments without opening a bank account.
- Reduce dependence on cash: This feature can also make those people a part of digital payments who were dependent on cash till now, which will reduce the use of cash and promote digital payments.
- Convenience and control: This feature is very convenient for busy people and families. Parents can allow their children to spend a limited amount and can also keep an eye on their expenses.
- Security and monitoring: The main user gets full control, so that they can ensure that their money is being spent correctly and safely.
How to transfer funds through UPI Circle
When the primary user initiates a UPI Circle and the secondary user accepts it, the UPI transaction can be processed. The primary user needs to setup a UPI PIN for fund transfer and share it with the secondary user.
The secondary user can follow the following steps to transfer funds using UPI Circle:
Step 1: Enter the beneficiary’s UPI ID or scan his/her QR code.
Step 2: Enter the amount to be transferred.
Step 3: There is an option to add a remark to the transaction.
Step 4: Enter the UPI PIN to complete the transaction.
Step 5: The primary user must enter the UPI PIN so that the funds can be finally transferred through the bank account.
Conclusion
UPI Circle brings a big change in digital payments, making it more inclusive and secure. This feature not only gives people more freedom but also provides them with the security and convenience of digital payments. According to me, this feature will further promote the use of digital payments and increase its acceptance in the society. This feature is especially useful for families and individuals who want to share their financial responsibilities with others. If you liked the information, then you must share it on social media and do not forget to use the comment box to answer any kind of question.
