Unified Payments Interface (UPI) has transformed the way people in India make payments, bringing cashless convenience to millions. Typically, UPI requires a linked bank account, but what if a person, like a child or senior family member, doesn’t have a bank account? That’s where UPI Circle comes into play.
UPI Circle, a feature offered by the National Payments Corporation of India (NPCI), allows multiple people to access one bank account to make UPI payments. This makes it easier for family members, especially those without a bank account, to perform digital transactions without needing their account.
Here’s a step-by-step guide to using UPI Circle, making UPI accessible for everyone in your family.
What is UPI Circle?
UPI Circle is a unique feature that allows a single bank account to be shared for UPI transactions with multiple users. With UPI Circle, a primary account holder can set up access for up to five secondary users. This feature is ideal for children, elderly family members, or anyone in the family without a bank account, making digital payments possible for them.
Setting Up UPI Circle: Step-by-Step Guide
Here’s a simple guide on how to set up UPI Circle using the BHIM-UPI app. The process may be similar on other UPI apps as well.
Step 1: Open the UPI Circle Option
- Open the BHIM-UPI app and look for the ‘UPI Circle’ option.
- Select ‘Add Family or Friends’ to start the process of adding a new member to your UPI Circle.
- You can add members either by scanning their QR code or by entering their UPI ID.
Step 2: Adding a Secondary User
- Choose to add a family member by entering their UPI ID.
- Enter the person’s UPI ID and click ‘Add to my UPI Circle’.
- Next, you’ll need to type in the phone number of the person you want to add. Make sure the person’s contact is saved in your phone’s contact list, as they won’t be added otherwise.
Step 3: Select Access Type
Once you’ve added the member, you can decide how they will use the account.
- Spend with Limits: This option lets you set a spending limit, allowing the secondary user to transact only within a specified amount.
- Approve Every Payment: This option requires you, the primary user, to approve every transaction the secondary user initiates. This offers more control and is ideal for added security.
Choose the option that best suits your requirements.
Step 4: Complete Setup with UPI PIN
If you choose the ‘Spend with Limits’ option, you will be prompted to set a spending limit. After entering the required information, click on ‘Proceed’.
Finally, confirm your setup by entering your UPI PIN. Once authorized, the secondary user will be added to your UPI Circle, and they can now begin making UPI transactions.
Benefits of UPI Circle
- Convenience for All Family Members: UPI Circle makes it easy for family members, like children or senior citizens, who may not have bank accounts to still make digital payments without restrictions.
- Control Over Transactions: The primary user can set limits or require approvals, ensuring that funds are managed responsibly.
- Inclusive Access: UPI Circle ensures that everyone, even those without a bank account, can benefit from the ease and convenience of digital transactions.
UPI Circle is a game-changer for Indian households, promoting digital inclusion for all family members. Whether for pocket money transactions for kids or managing daily expenses for seniors, UPI Circle brings everyone into the digital payment world without needing separate bank accounts.
