The Unified Payments Interface (UPI) now introduces a feature that allows up to five family members to make payments from a single bank account. This feature, called UPI Circle, was recently launched by the National Payments Corporation of India (NPCI) and announced by the Reserve Bank of India (RBI). Here’s what you need to know:
Understanding UPI Circle
UPI Circle is a delegated payment feature that lets the primary user share their UPI account with up to five secondary users, typically family members. This means that instead of needing separate bank accounts, multiple people can make payments from the same account.
How Does UPI Circle Work?
UPI Circle has two types of users: primary and secondary. The primary user is the account owner, who adds secondary users and sets payment limits for them. Depending on the settings, secondary users can either have full or restricted payment access.
Types of Delegation
- Full Delegation: The primary user allows the secondary user to make payments up to a set limit without requiring further approval.
- Partial Delegation: The secondary user initiates transactions, but the primary user must approve and authenticate the payment using their UPI PIN.
Key Rules of UPI Circle
- Secondary users must provide an app passcode or biometric details to make payments.
- Up to five secondary users can be added to one account.
- The monthly spending limit for the UPI Circle is set at ₹15,000.
- Daily spending is capped at ₹5,000 under partial delegation.
- A 24-hour cooling period applies to newly added users.
- The primary user can track all transactions and halt payments if needed.
This UPI Circle feature is designed to simplify family transactions while providing flexibility and control to the primary account holder.