The National Payments Corporation of India (NPCI) has launched a new feature called UPI Circles, designed to make digital transactions even more accessible and convenient. This feature allows one person, called the primary user, to authorize another person, called the secondary user, to make payments using his UPI account. The secondary user can make transactions within the prescribed limit even if he does not have a bank account linked to UPI.

UPI Circle is a useful feature for those who are not comfortable with digital payments or who do not have their own UPI-enabled bank account. By enabling a primary user to delegate payment tasks to a secondary user, UPI Circle simplifies daily transactions. For example, a parent can give their child the ability to pay for school supplies, or a busy professional can authorize their domestic helper to buy groceries, all within a controlled spending limit.

UPI Circle can be especially useful in several situations:

– Parents can authorize their child to make small payments for things like food or school supplies, ensuring they don’t overspend.

– Elders who are wary of digital payments can trust their children to handle the transaction process, thereby reducing the stress associated with online payments.
– For people with a busy schedule, UPI Circle lets them delegate shopping tasks to their domestic help while keeping a close track of expenses.

-Business owners: Small business owners can authorize their employees to make purchases without giving them cash, keeping transactions within a set limit.

The idea behind UPI Circle comes from the realization that many people still rely on cash for everyday payments. Although UPI has made digital payments easier, there is still a large segment of the population that either does not have a bank account or is not comfortable managing their money through digital means. With UPI Circle, NPCI hopes to help bridge the gap, allowing those who are comfortable with digital transactions to help those who are not.

For example, in many households, one member manages finances for the entire family and makes UPI transactions. UPI Circle allows this person to delegate some of these tasks, ensuring that other members of the household can make payments without needing direct access to the primary bank account.

UPI Circle is an innovative feature aimed at making digital payments more inclusive, allowing more and more people to benefit from the convenience of UPI without the usual barriers.