UPI Circle Delegate Payments India: UPI Circle is a new feature that allows the primary holder of a UPI account to delegate transaction rights to secondary users. This means multiple people can use the same bank account for UPI payments but with specific controls in place.

What Is UPI Circle?

UPI Circle is a new feature introduced by the National Payments Corporation of India (NPCI) that allows primary users to share their UPI accounts with trusted secondary users.

UPI Circle: How it Works

• Primary User: The account holder who initiates the Circle and controls the delegation.
• Secondary User: A trusted individual granted partial or full access to the account for making payments.

Types of Delegation:

• Full Delegation: The secondary user can make payments up to a specified limit, without requiring the primary user’s approval for each transaction.
• Partial Delegation: The secondary user can initiate payment requests, but the primary user needs to approve and complete the transaction with a UPI PIN.

Key Benefits:

• Convenience: Multiple users can access the same account for payments.
• Financial Inclusion: Enables people without bank accounts to participate in digital payments.
• Control: The primary user retains control over transaction limits and overall account access.

NPCI Guidelines on UPI Circle

UPI Circle is a tool for convenient and secure sharing of UPI payment capabilities within a trusted Circle of individuals. However, there are certain guidelines issued by NPCI for UPI Circle;

1. UPI apps and PSP to offer independent user journeys for primary and secondary users. User shall have their own choice of UPI app

2. UPI apps shall ensure app passcode/biometrics (finger/face), etc. mandatory for all secondary users

3. For linking, the primary user shall scan QR/enter UPI ID followed by selection of contact number from the contact list. In the later phase, primary users shall be able to link secondary users in lieu of QR code scan by selection of contact number from the contact list only

4. A primary user can delegate to up to 5 secondary users and a secondary user can accept delegation from only one primary user

5. Members shall ensure that the primary authorise the secondary user on either full or partial delegation

6. Members shall ensure limits control to be available for the primary to set usage controls over their secondary users

7. For full delegation, members shall ensure a maximum monthly limit of Rs 15,000 per delegation and a maximum per transaction limit of Rs 5000

8. Existing UPI limits shall be applicable in case of partial delegation

9. Members shall ensure that during the cooling period- first 24 hours, a daily transaction limit of Rs 5000 shall be prescribed after successful linking of primary and their secondary users for both full and partial delegation

10. Members shall ensure that the primary user has visibility of transactions performed by secondary users on their UPI app and bank account statement

11. Members shall adhere to RBI guidelines on ‘Harmonisation of Turn Around Time and customer compensation for failed transactions using authorised payment systems’

12. Online dispute resolution functionality shall be available for UPI transactions

13. Reconciliation process shall be as per the existing UPI guidelines. A new purpose code in the existing UPI raw file and a new line item in the Net settlement report shall be introduced to identify the UPI Circle transaction and settlement, respectively. Additional raw file shall be provided for UPI Circle payments with secondary user details, shared to primary PSP, secondary PSP and remitter bank.

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