Social ,26 Apr 2025

BHIM Introduces UPI Circle: Enhancing Secure Delegated Payments in India

In a significant advancement for India's digital payment ecosystem, the National Payments Corporation of India (NPCI) has unveiled the UPI Circle feature on the BHIM app. This innovative functionality allows users to delegate payment responsibilities securely to trusted individuals, ensuring both convenience and control in financial transactions.​

 

What is UPI Circle?

UPI Circle is a feature that enables a primary user to authorize up to five trusted secondary users—such as family members or colleagues—to initiate UPI transactions on their behalf. Each transaction initiated by a secondary user requires real-time approval from the primary user, maintaining stringent control over the account. ​

 

Key Features

1. Real-Time Approval: Every transaction by a secondary user prompts an immediate notification to the primary user for approval, ensuring security.​
2. Delegation Types:
1. Partial Delegation: Secondary users can initiate transactions, but completion requires the primary user's UPI PIN.
2. Full Delegation: Secondary users can complete transactions independently within set limits.​
3. Transaction Limits:
1. Full Delegation: Maximum of ₹5,000 per transaction and ₹15,000 monthly per delegate.
2. Partial Delegation: Adheres to existing UPI limits.​
4. Cooling Period: A 24-hour period with a ₹5,000 transaction cap applies when adding a new secondary user.​

 

How to Activate UPI Circle on BHIM

1. Update BHIM App: Ensure you have the latest version installed.​
2. Access UPI Circle: Navigate to the 'UPI Circle' section within the app.​
3. Add Trusted Users: Input the UPI IDs or phone numbers of up to five individuals you wish to authorize.​
4. Set Delegation Type and Limits: Choose between partial or full delegation and define transaction limits accordingly.​

 

Practical Use Cases

1. Family Management: Parents can allow children to make necessary purchases while monitoring spending.​
2. Assisting Seniors: Elderly individuals wary of digital payments can have trusted family members manage transactions on their behalf.​
3. Workplace Efficiency: Managers can delegate payment tasks to assistants, streamlining business operations.​

 

Future Prospects

While currently available on the BHIM app, other major payment platforms like PhonePe have begun integrating UPI Circle, broadening its accessibility. ​

 

UPI Circle represents a significant advancement in India's digital payment landscape, offering a secure and flexible solution for shared financial responsibilities. By balancing convenience with control, it caters to a diverse range of users, from tech-savvy individuals to those less familiar with digital transactions.