What is UPI Circle?

UPI Circle is an NPCI feature that enables delegated payments on a single UPI account. The primary user links secondary users and grants them authority to make UPI payments on their behalf. UPI Circle is designed for users who need assistance with digital payments, delivering secure, compliant, and controlled shared UPI account management.

How UPI Circle Works: Types of Delegation

UPI Circle supports two delegation modes so primary users can choose the right balance of control and convenience for shared UPI payments.

1. Full Delegation: The primary user grants complete authority within predefined spending limits. The secondary user can initiate and complete UPI transactions independently for routine payments and daily expenses.
2. Partial Delegation: The secondary user initiates a transaction, but the primary user must authenticate with the UPI PIN to finalize payment. This keeps control with the primary user for larger or sensitive transactions.

Key Guidelines for UPI Circle Implementation

NPCI’s UPI Circle guidelines ensure a secure, user-friendly experience across UPI apps and Payment Service Providers (PSPs) while enabling shared UPI account control.

1. Independent User Journey: Primary and secondary users have separate app journeys, preferences, and controls for personalized UPI Circle management.
2. Mandatory Security Protocols: Secondary users must use passcodes or biometric authentication (fingerprint or facial recognition) to protect UPI delegated payments.
3. Linking Process: The primary user links a secondary user via QR scan or UPI ID and selects the contact from the phone. NPCI plans to restrict manual mobile entry to contact selection for enhanced security.
4. Delegation Limits: One primary user can delegate to up to five secondary users, and a secondary user can accept delegation from only one primary user to keep responsibilities clear and manageable.

Who Can Benefit from UPI Circle?

UPI Circle extends digital payments to users who need assistance while preserving oversight and security in a shared UPI account.

1. Elderly Family Members: Delegate UPI payments to a trusted relative for bills and routine transactions without handling every step personally.
2. Children or Dependents: Provide controlled access for daily expenses with spending limits and real-time authorization.
3. Household Workers: Enable secure, compliant transactions even when workers lack independent bank accounts or UPI IDs.

The Impact of UPI Circle on Digital Payment Accessibility

UPI Circle advances financial inclusion by enabling multiple users to access one UPI account with clear rules, limits, and strong authentication. As UPI apps and PSPs adopt UPI Circle, shared UPI account management will become more inclusive, secure, and convenient, empowering users who rely on others for digital payments.

UPI Circle: Inclusive, Secure, and Practical Shared UPI Management

By combining delegated control, biometric security, and transparent limits, UPI Circle aligns with NPCI’s vision to expand digital payments in India. Primary and secondary users can make informed decisions about managing shared UPI accounts, leading to a safer, more accessible digital payment ecosystem.

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Resourced by : FinCrif - Instant Personal loan app in India