Key Takeaways:
- UPI Circle allows multiple people to share a single UPI ID.
- Primary users set access limits for secondary users, with options for full or partial delegation.
- Full delegation permits transactions up to Rs. 15,000 per month; partial requires primary user approval.
- Security includes mandatory biometric or app passwords for secondary users, with primary users controlling access and viewing transaction history.
Till now, to use the UPI facility for payments, each individual needed to link a bank account to a unique UPI ID on their mobile phone. But, in August 2024, the NPCI came up with a new facility called ‘UPI Circle’ which helps in delegation of authority for one UPI ID. With UPI Circle now, multiple individuals are allowed to utilize one UPI ID.
Read the blog below to learn about the requirements established by NPCI and to understand how UPI Circle functions.
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What is UPI Circle?
The NPCI has introduced a new feature called UPI Circle, which allows multiple individuals to share a single UPI ID . In this system, the primary user-typically the account holder-can grant access to a trusted person, such as a family member, friend, or spouse, who is designated as a secondary user. Both users can then use the shared bank account and UPI ID for transactions.
The primary user can set a predefined access limit for the secondary user. To ensure security, the NPCI has provided the primary user with the ability to manage access, allowing them to grant or revoke permissions as needed.
What is UPI ID and How to Create UPI ID?
Purpose of UPI Circle
UPI Circle was officially approved by the authorities keeping in mind the following benefits:
- Easy access to digital payments to kids and elders who do not have their own bank account.
- Cash dependency can gradually fall if the people who do not have a bank account also get the access to UPI through a family member or friend.
- The number of UPI users will also increase if the access to use UPI for any transactions is also provided to people who till now do not have their own bank account.
How to Link UPI for Secondary Users?
Following is the method through which you can link UPI with secondary users and give them access to utilize primary user UPI ID.
For linking:
- Primary users first need to scan QR or enter the UPI Id.
- Select the contact from your contact list to which you wish to provide access to your UPI Id.
- Once you select the contact, the linking process shall begin.
Note:
- Manually entering the contact number is restricted. The contact should be selected from the contact list of primary users only for security purposes.
- The steps shall be more precise once the facility is launched.
Types of Delegation: Full and Partial
NPCI now allows primary users to choose delegation from two available options. Let’s explore each option in detail.
- Full Delegation: The primary user can predefine the amount for a secondary user UPI usage. The secondary user shall make any UPI payment within that limit only. As per NPCI, the maximum UPI limit for secondary users is Rs. 15,000 per month and per transaction limit is Rs. 5,000.
- Partial Delegation: Unlike full delegation, here the secondary user is required to send a payment request to the primary user. The primary user will review the request and by entering the UPI PIN can complete the UPI transaction.
Guidelines by NPCI for Primary & Secondary Users
To ensure UPI Circle is a safe method of access delegation, NPCI has provided following guidelines that work as security protocols.
- All the UPI and PSP needs to provide an independent user journey to both the primary and secondary UPI user, which means a user can use any UPI app as per their preference.
- For all the secondary users, a biometric or app-password is mandatory.
- A primary user can give access to 5 secondary users or devices, but a secondary user can have only one primary user. There can not be multiple primary users giving access to a secondary user.
- The maximum per month transaction limit for secondary users is Rs 15,000 and per transaction limit is Rs. 5,000.
- For partial delegation, the existing UPI limits are applicable.
- Primary user shall decide if the secondary user should be provided with full authorization or partial authorization.
- The primary user shall have the entire control of the secondary user UPI usage.
- If you have newly linked your UPI, for the first 24 hours, the per transaction limit shall be Rs. 5000 for both primary and secondary users.
- The primary user shall have access to the transaction history of the secondary user and the entire bank account statement shall be visible to the primary user.
NPCI Guidelines for UPI Companies
- All pre-existing RBI guidelines for UPI companies on ‘Harmonization on Turnaround Time’ as well as the customer compensation for any failed transactions using authorized system shall be followed.
- The Online Dispute Resolution (ODR) facility shall be continued.
- All pre-existing UPI guidelines to be followed prior to any new notice regarding UPI Circle.
NPCI has introduced this feature to support families where only one member has a bank account and a linked UPI ID. With this update, other family members can also access the shared UPI ID. To ensure security and prevent misuse, the primary user retains control over access, managing who can use the UPI ID and setting limits as needed. This helps maintain safe and effective use of the shared account.
