Even if you have a zero balance in your bank account, you can still make UPI payments! Learn how this feature is useful for you..

UPI Circle: Now, you can make UPI payments even if you don't have a single rupee in your bank account. This may sound strange, but it's about to become a reality. The National Payments Corporation of India (NPCI) has launched a new feature called "UPI Circle," which allows users to authorize trusted individuals to make payments from their bank account.

What is UPI Circle?
UPI Circle is a kind of "trust circle" where you allow your family or trusted friends to make transactions using your UPI ID. The advantage is that even if you don't currently have a balance in your bank account, the other person can still make transactions up to the limit you set.

For example, if you've given your child, spouse, or employee a limit of ₹2,000, they can make payments up to that amount without your repeated approval.

How does this feature work?

This feature allows two types of users:

Primary User: One who shares their account and UPI access.
Secondary User: One who is allowed to make limited transactions from that account.
The Secondary User can make payments through UPI, but each transaction will be subject to certain limits and conditions. The Primary User can also make their approval mandatory for each transaction.

How to activate the UPI Circle feature?
If you use the BHIM UPI app, activating this feature is very easy.

Open the BHIM UPI app on your mobile.
Log in with your registered mobile number.
Select the 'UPI Circle' option.
Add the person you want to add using their phone number, UPI ID, or QR code scan.
Then, set the maximum amount they can pay.
If desired, select the option to require your approval for every transaction.
Finally, enter your UPI PIN and submit.

That's it! Your UPI Circle is now ready, and the other person will be able to make transactions within your set limit.

Under what circumstances will it be most beneficial?
This feature will be especially beneficial for those who cannot make direct digital payments or who do not have their own bank account.

Parents: You can allow their children to make payments by setting spending limits.

Senior citizens: Those who are intimidated by digital payments can allow their children to make payments.

Business owners: You can set limits for their drivers or staff for fuel, trip expenses, etc.

Household users: Busy couples can allow limited transactions for their maids or delivery persons for household chores.

What will be the transaction limit?

₹5,000 per transaction per device
₹15,000 monthly limit per device
₹2,000 limit in the first 24 hours after linking a new device
A maximum of 5 devices/software can be linked at a time

Why is this feature important?
Many people still rely on cash because they either don't have a bank account or aren't comfortable with digital payments. UPI Circle will become a medium to connect these people to digital payments. This will further promote a cashless economy and simplify payment management for families and small businesses.

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