The National Payments Corporation of India (NPCI) has launched a new feature called UPI Circle, aimed at making digital transactions more accessible and convenient for users across the country. This feature allows a Primary User to authorize another individual, known as the Secondary User, to make payments using their UPI account. The Secondary User can perform transactions within defined limits, even without having a bank account linked to UPI.
UPI Circle is particularly beneficial for individuals who may not be comfortable with digital payments or do not have their own UPI-enabled bank account. By allowing the Primary User to delegate payment tasks, UPI Circle simplifies everyday transactions. For example, a parent can enable their child to pay for school supplies, or a busy professional can authorize their household help to buy groceries, all while keeping spending under control.
The feature is designed to be useful in various real-life scenarios. Parents can empower their children to make small payments for food or school supplies without the risk of overspending. Older adults who may be hesitant about digital transactions can rely on their children to handle payments, reducing the stress associated with managing money online. For those with busy schedules, UPI Circle allows them to delegate shopping tasks to their domestic help, while maintaining oversight of expenditures. Small business owners can also benefit by authorizing staff to make purchases within set limits, eliminating the need to handle cash.
The introduction of UPI Circle addresses a key challenge in the digital payments landscape: the reliance on cash for daily transactions. Despite the growth of UPI, many people remain outside the digital payments ecosystem due to a lack of bank accounts or discomfort with managing finances digitally. UPI Circle aims to bridge this gap by enabling those familiar with digital payments to assist others who are not.
In many households, one member typically manages finances and handles UPI transactions for the entire family. UPI Circle allows this individual to delegate certain tasks, enabling other family members to make payments without direct access to the main bank account. This feature represents NPCI’s ongoing efforts to make digital payments more inclusive and user-friendly, bringing the benefits of UPI to a wider audience and reducing barriers to adoption.6-*
