If there are 5 people in the house, then everyone should have a bank account. Also, everyone’s personal mobile number should be linked to their bank account, in such a situation UPI payment can be made. But now users can transfer money even without an account. For example, suppose there are 5 people in your house, then the head of that house can add 5 household members to his UPI account. This feature has been named UPI Circle, which has been launched by the National Payment Corporation of India i.e. NPCI. The Reserve Bank of India (RBI) has announced this feature in recent times.
What is UPI Circle feature?
UPI Circle is a delegated payment feature that allows the primary feature to be integrated with other concurrent payments. It can be used for partial or full payments. That is, parents can share their UPI account with children.
How will the UPI circle feature work?
There are two types of users, primary and secondary. Primary users have their own accounts to which they can add secondary users. Also, some limitations can be imposed. In this, full payment access can be given to secondary users. Or some limited payment options can be made available to secondary users.
Full delegation
In this the primary user can allow the secondary user to spend transactions up to a predetermined spending limit without any approval.
Partial delegation
It allows secondary users to transact, but primary users have to enter the UPI PIN for authentication and payments.
What are the UPI circle rules?
Secondary users will need to provide the app passcode or biometric details to make payments.
The primary user can add up to 5 people to their account for payments.
The monthly spending limit in UPI circles has been fixed at Rs 15,000.
The maximum spend in a day is Rs 5000. This UPI limit will apply to partial representation.
UPI circle cooling period is 24 hours.
If primary users wish, they can monitor every transaction of secondary users and block payments.
