What is UPI Circle and Its Use

Digital payments in India have grown rapidly with the rise of UPI (Unified Payments Interface). However, not everyone in a household or business setup directly uses UPI—some people still depend on cash or on others to make payments for them. To solve this problem, a new feature called UPI Circle has been introduced.

Let’s understand what UPI Circle is, how it works, and how you can use it in simple terms.

What is UPI Circle?

UPI Circle is a feature that allows one person (called the Primary User) to authorize another person (Secondary User) to make payments using their UPI account—with certain limits and controls.

In simple words, It lets you safely share your UPI payment power with someone you trust.

Key Roles in UPI Circle

1. Primary User

• The person who owns the bank account linked to UPI
• Gives permission to others to spend money
• Sets limits and controls transactions

2. Secondary User

• The person who makes payments using the primary user’s account
• May or may not have their own bank account
• Can only spend within the allowed limits

Why Was UPI Circle Introduced?

Even though UPI is widely used, many people still rely on cash because:

• They don’t have a bank account
• They are not comfortable using digital payments
• One person in the family manages all finances

UPI Circle solves this by:

• Allowing controlled access to digital payments
• Reducing dependency on cash
• Making payments more convenient and secure

Real-Life Examples of UPI Circle

Parents and Children

Parents can allow their child to spend money digitally for:

• Food
• Travel
• Stationery
  While keeping track of expenses

Senior Citizens

Elderly people who are unsure about digital payments can:

• Let their children authorize payments
• Shop freely without handling cash

Busy Working Families

You can allow:

• House help or family member to pay for groceries and daily needs without giving physical cash.

Business Owners

Employers can:

• Allow staff or drivers to make payments
• Avoid giving petty cash
• Maintain better tracking and control

UPI Circle for IoT Devices (Smart Payments)

UPI Circle also supports payments through IoT (Internet of Things) devices. This means payments can be made through:

• Smart TVs (for subscriptions)
• Smart glasses (retail purchases)
• Connected cars (fuel or EV charging)
• AI chatbots (shopping)

This feature is currently in limited (pilot) usage.

Transaction Limits

To ensure safety, UPI Circle has strict limits:

• ₹5,000 per transaction
• ₹15,000 monthly per device
• ₹2,000 limit in the first 24 hours after linking
• Maximum 5 devices can be linked

How to Use UPI Circle (Step-by-Step)

Step 1: Start Registration

• Open the IoT app or supported platform
• Select “Enable UPI for your device”

Step 2: Enter Mobile Number

• Use the same mobile number linked to your UPI account

Step 3: Verify with OTP

• Enter the OTP received on your phone

Step 4: Scan QR / Link Device

• A QR code will appear
• Scan it using your main UPI app

Step 5: Give Consent

• Review device details
• Set spending limits
• Approve using UPI PIN or biometrics

Step 6: Start Using

• The secondary user or device can now make payments within limits

Benefits of UPI Circle

Cashless Convenience:No need to carry cash or give physical money

Controlled Spending: Primary user sets limits and monitors usage

Safe Delegation: Only trusted users can access the account

 Financial Inclusion: Helps people without bank accounts use digital payments

Better Expense Tracking: Every transaction is recorded digitally

Important Safety Tips

• Only authorize trusted individuals
• Set reasonable transaction limits
• Monitor transaction history regularly
• Remove access if no longer needed

Conclusion

UPI Circle is a powerful step toward making digital payments more inclusive and flexible. It allows families, businesses, and individuals to share financial access safely without losing control.

Whether it’s helping your child manage expenses, supporting elderly parents, or simplifying business payments—UPI Circle brings convenience, control, and security together in one solution.

References:

https://www.npci.org.in/product/upi-circle