UPI (Unified Payments Interface) has transformed digital payments in India, making transactions simple, fast, and secure. From small shops to large businesses, almost everyone now accepts UPI payments. With growing convenience, a new feature called ‘UPI Circle’ has been introduced, allowing multiple users to access and make payments from the same UPI account.
This means you can share your UPI account with family members, close friends, or trusted individuals, making it easier for them to pay without needing their own bank account. Let’s understand how this feature works, who can use it, and the security measures involved.
What is the UPI Circle Feature?
UPI Circle is a new functionality that allows a primary UPI user (account holder) to authorize secondary users to make payments using the same UPI account. It eliminates the need for individual bank accounts, making financial transactions more flexible for families and close contacts.
For example, if a person is working in another city and wants their parents to have easy access to funds, they can simply add them to their UPI Circle instead of frequently transferring money.
Where is UPI Circle Available?
Currently, UPI Circle is available on the BHIM app. Over time, it is expected to be integrated into other UPI-enabled apps such as Google Pay, PhonePe, and Paytm.
How Does UPI Circle Work?
Using the UPI Circle feature is quite simple. The primary UPI account holder can add up to five secondary users who can make payments using the same UPI ID. Here’s how it works:
1️⃣ Adding a Secondary User:
- The primary user enters the UPI ID of the person they want to add.
- If the UPI ID is unknown, the user can scan a QR code to link the secondary account.
2️⃣ Setting Permissions:
- The primary user decides whether the secondary user gets full payment delegation or partial payment delegation (more details below).
3️⃣ Making Payments:
- Once added, the secondary user can use the UPI account for payments without requiring separate credentials.
4️⃣ Managing Users:
- The primary user can remove or change access for secondary users at any time.
Types of Payment Delegation in UPI Circle
The primary user can set two types of permissions while adding secondary users:
1️⃣ Full Payment Delegation
- The secondary user can make payments up to a fixed limit without needing the UPI PIN.
- Useful for trusted family members like parents, spouses, or children.
- Ideal when regular expenses need to be managed smoothly without needing frequent approvals.
2️⃣ Partial Payment Delegation
- The secondary user can initiate payments, but the primary user must approve each transaction.
- Works best when additional security is needed.
- Suitable for situations where the primary user wants to control spending.
Who Can Use the UPI Circle Feature?
The UPI Circle feature is designed for families, close friends, or trusted individuals who need shared access to a UPI account. Some common use cases include:
✔ Parents & Children: Parents can give their children access to funds without providing them a separate bank account. ✔ Spouses: One partner can allow the other to make payments from the same UPI account. ✔ Elderly Family Members: Senior citizens who are not comfortable using online banking can still make payments through an authorized secondary user. ✔ Small Business Owners: Business owners can provide limited access to employees for handling daily expenses.
Benefits of Using UPI Circle
✅ Easy Sharing: No need to transfer money frequently; trusted individuals can directly access funds.
✅ Time-Saving: Eliminates the hassle of handling multiple bank accounts for household or business expenses.
✅ Secure & Controlled: The primary user has full control over permissions and spending limits.
✅ Convenient for Families: Parents, spouses, and children can make payments from a single account without worrying about separate transactions.
✅ Works Without New Accounts: Secondary users don’t need a separate bank account; they can use the same UPI ID.
Is UPI Circle Safe?
Security is a major concern when allowing multiple users to access a financial account. UPI Circle is designed with safety measures:
✔ Limited Users: Only up to 5 people can be added, reducing the risk of misuse.
✔ Customizable Permissions: The primary user can decide whether secondary users need approval for payments.
✔ Change or Remove Access Anytime: Users can be removed instantly if there is any suspicious activity.
✔ Set Spending Limits: The primary user can set daily transaction limits to prevent overspending.
✔ Secure Payment Process: Payments are processed through UPI’s secure infrastructure, ensuring protection against fraud.
How to Get Started with UPI Circle?
If you want to use the UPI Circle feature, follow these steps:
1️⃣ Download & Open the BHIM App (currently the only app supporting UPI Circle).
2️⃣ Go to the UPI Circle section in the app.
3️⃣ Add secondary users by entering their UPI ID or scanning their QR code.
4️⃣ Set payment permissions (full or partial delegation).
5️⃣ Confirm & Start Using – Now, the secondary user can make payments using the same UPI account!
Final Thoughts
UPI Circle is a game-changer for digital payments in India, offering a secure and flexible way to share UPI accounts with trusted individuals. Whether it’s for family members, friends, or business purposes, this feature makes financial management easier while maintaining security and control. As more UPI apps start supporting this feature, digital payments will become even more convenient for everyone.
If you frequently transfer money to close ones or manage household expenses, UPI Circle can simplify your transactions and save time. Try it today on the BHIM app and experience seamless payments!
