A new feature that will make payments easier

UPI (Unified Payments Interface) has made digital payments simple and convenient. Now every small and big purchase can be easily paid online. In this series, a new facility called UPI Circle has been introduced. This feature makes UPI payments more useful and family-centric. Now multiple people can make UPI payments from a single bank account, making financial cooperation between family and friends easier.

What is UPI circle?

UPI Circle is a feature that allows two or more people to make UPI payments from one bank account.

• Primary Account Holder: The account holder can allow his parents, children, or friends to make payments from his account by making him a secondary user.
• Secondary User: These users can make UPI payment from the same account.
• Transparency: The primary account holder can view and monitor all transactions made by the secondary user.

Steps to turn on UPI circle

Step 1: Open BHIM UPI app

• Go to BHIM-UPI app.
• Click on ‘UPI Circle’ option.
• Tap on the ‘Add Family or Friends’ button.

Step 2: Add UPI ID

• Enter the UPI ID of the friend or family member.
• Click on ‘Add to my UPI Circle’ option.
• Note that the person adding must be in your contacts list.

Step 3: Choose payment option

• You will get two options:
  1. Spend with limits: Secondary user can make payment within a fixed limit.
  2. Approve every payment: Every transaction must be approved by the primary user.
• Choose the option as per your requirement.

Step 4: Set limits

• If you selected Spend with limits, provide the following information:
  • Monthly payment limit.
  • Last date of permission.
  • Bank account from which money will be deducted.
• Fill all the information and click on proceed.
• After entering the UPI PIN, the secondary user will be added to the circle.

Things to keep in mind while activating UPI circle

1. Updated version of BHIM app:
   The UPI Circle feature is available only in version 3.8.1 and above of the BHIM app.
2. Save number to contact list:
   Your friend or family member’s UPI ID and mobile number should be saved in your contact list.
3. Approval Process:
   • If the secondary user makes a transaction, the money will not be deducted from the account until the primary user gives approval.
   • The approval request will appear as a notification or in the ‘Approve to Pay’ section of the app.
4. Transaction Limit:
   • The transaction limit in UPI circle becomes fully active after 30 minutes.
   • A 24-hour cooling period applies when adding a new member, with a maximum transaction limit of ₹5,000.
5. Instant Request:
   If immediate payment is required, the secondary user can request instant approval from the primary user.

Benefits of UPI Circle

1. Convenience for family and friends:
   • Makes life easier for parents or children by allowing them to make payments from a single account.
2. Transparency and Control:
   • It is possible for the primary user to monitor every payment made by the secondary user.
3. Facility to set limits:
   • The primary user can set monthly spending limits, which prevents unnecessary expenses.
4. Emergency Help:
   • If a family member needs money immediately, the primary account can provide immediate help.