New Delhi: The National Payments Corporation of India (NPCI) has introduced a new feature called ‘UPI Circle’, allowing users to make UPI payments even when their bank account balance is zero. The feature enables users to authorize trusted individuals to make limited transactions from their account, adding a new layer of flexibility to India’s fast-growing digital payment ecosystem.
What Is UPI Circle?
According to NPCI, UPI Circle is designed as a trust-based payment system where users can create a small circle of family members, friends, or employees and authorize them to initiate payments on their behalf within a pre-defined limit.
Even if the account balance is temporarily zero, the authorized person — called a secondary user — can complete transactions within the set limit.
For instance, if a user sets a limit of ₹2,000 for their child or staff member, that person can make payments up to the allowed amount without requiring constant approval.
How the Feature Works
UPI Circle functions with two types of users:
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Primary User: The main account holder who grants transaction access.
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Secondary User: The trusted individual permitted to make limited UPI transactions.
While the secondary user can make payments independently, all transactions remain within the preset limit. The primary user also has the option to mandate approval for every transaction for added security.
How to Activate UPI Circle
The feature is currently available on the BHIM UPI app, and activation can be done in a few simple steps:
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Open the BHIM app and log in with your registered mobile number.
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Select the ‘UPI Circle’ option.
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Add a trusted person using their phone number, UPI ID, or QR code.
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Set the maximum transaction limit for that person.
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Optionally enable manual approval for every transaction.
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Enter your UPI PIN and confirm.
Once set up, the selected user can initiate transactions within the authorized limit through UPI.
Who Can Benefit
The new feature is expected to benefit a wide range of users — particularly those who depend on others for digital transactions or lack direct banking access.
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Parents can allow children to make limited digital payments.
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Senior citizens can delegate payment access to family members.
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Small business owners can set transaction limits for staff or drivers to manage travel or fuel expenses.
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Households can authorize domestic workers or delivery agents for controlled spending.
Transaction Limits
NPCI has set specific transaction limits under the UPI Circle feature:
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₹5,000 per transaction per device
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₹15,000 monthly limit per device
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₹2,000 limit for the first 24 hours after linking a new device
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A maximum of five devices or apps can be linked to one account
Why UPI Circle Matters
Despite India’s growing digital ecosystem, many users still rely on cash due to lack of access or fear of digital transactions. UPI Circle aims to bridge this gap by offering a secure, trust-based mechanism that encourages broader participation in cashless payments.
Experts say the feature could also simplify financial management for families and small enterprises by delegating limited payment authority without compromising account security.
Safe and Controlled
NPCI emphasized that UPI Circle ensures full safety and transparency. Each transaction can be restricted by amount, frequency, and approval requirements. Users can revoke access or modify limits anytime through their UPI app.
Currently, UPI Circle is available only on the BHIM app, but NPCI confirmed that other major UPI platforms are expected to roll it out in the coming months.
In Summary
The UPI Circle feature represents another major step in India’s journey toward a cashless economy, offering greater convenience, control, and inclusion. By enabling zero-balance transactions within trusted circles, NPCI has expanded the possibilities of UPI beyond traditional payments — making digital transactions accessible to everyone.
