The National Payments Corporation of India (NPCI) approved an update to UPI Circle that will absolutely extend UPI Circle accepted use beyond the typical friend and family circumstances. This NPCI-approved UPI Circle update could change how users use digital payments by giving users more options and control.
What is UPI Circle?
UPI Circle is the combined use of a primary UPI user enabling a secondary user to incur a payment obligation for the primary user. This means the secondary user can transact from the primary UPI user account in limited scopes and securely and conveniently draw down the account value. The UPI Circle is intended for contacts who the UPI user is close to, such as family or trusted friends.
What it Means to Expand Use
With the newly expanded UPI Circle, the UPI user can authorise more people. This could involve colleagues, supportive staff, personal assistants, and collective individuals who can conduct limited transactions on behalf of the primary user. NPCI is on a broader strategy to evolve the UPI Circle from personal contacts to include more real-life payment relationships and encourage digital payments.
Key Features and Benefits of UPI Circle
1. Delegated Payments: UPI Circle allows a primary user to delegate payment authority to other members within a trusted group. These assigned users can carry out UPI payments up to a monthly limit of ₹15,000, offering a secure and convenient way to manage shared expenses. This is ideal for families, small teams, or households where one person manages finances but others need limited access for day-to-day spending.
2. Security First: Security is at the core of UPI Circle. Every transaction initiated within the circle must go through multi-factor authentication, such as an app password or biometric verification. This ensures that even with delegated access, all transactions are secure, traceable, and protected against unauthorized use.
3. Custom Limits & Controls: UPI Circle gives the primary user complete control through customizable spending rules. You can define:
- The maximum transaction amount
- The type of expenses allowed (e.g., groceries, bills, travel)
- Whether a transaction requires prior approval
This empowers users to safely delegate payments without losing oversight.
4. Inclusive Financial Access
UPI Circle is especially useful for dependents who don’t have their own UPI-enabled bank account—such as minors, domestic help, elderly parents, or temporary caregivers. It offers controlled, inclusive access to digital payments, promoting responsible use without compromising security.
Types of Delegation in UPI Circle: Full vs. Partial
To promote safer and more flexible digital transactions, NPCI (National Payments Corporation of India) now enables UPI Circle Delegation, giving primary users control over how payments are made by others in their circle. There are two types of delegation: Full and Partial. Here’s a detailed breakdown of each:
1. Full Delegation
In Full Delegation, the primary user sets a spending limit in advance for the secondary user. The secondary user can then independently make UPI payments as long as the transaction amount stays within the predefined monthly and per-transaction limits.
- No need for approval from the primary user on each transaction
- Convenient for day-to-day payments like groceries, bills, or transport
- UPI limit: ₹15,000/month
- Per transaction limit: ₹5,000
- Secured via app authentication and transaction logs
This is ideal for dependents who need frequent payment access without constant oversight.
2. Partial Delegation
In Partial Delegation, the secondary user cannot initiate a UPI payment independently. Instead, they must send a payment request to the primary user, who will then review, approve, and complete the transaction by entering their UPI PIN.
- Allows greater control over outgoing payments
- Ideal for situations requiring manual approval and oversight
- No payment happens without the primary user’s confirmation
This model is best suited for larger payments, infrequent needs, or younger users, where stricter control is preferred.
Both delegation types empower users to safely share UPI access while retaining control, enhancing digital inclusion without compromising financial security.
Conclusion: The NPCI UPI Circle update creates new possibilities for digital payments in India. By creating other uses for UPI Circle, and now that the UPI Circle is available, NPCI will allow everyday people to manage their money in new, flexible ways. The UPI Circle will expand and gain traction with NPCI so that we will see payments become more personal, trusted and effective in the digital payment space.
