UPI services are expanding rapidly. UPI has revolutionized digital payments, and new features are being introduced regularly.
Even if you don’t have a bank account, NPCI has introduced a new UPI Circle feature to help you access UPI services. With this feature, the family can use a single UPI account together.
The National Payments Corporation has introduced a new feature on the Unified Payment Interface (UPI) platform that is essential for the digital payments system.
This new feature, UPI Circle, is a game-changer. It allows users to use their UPI account to make payments even if the recipient does not have a bank account. Its numerous and exciting benefits make it a must-try for all digital payment enthusiasts.
This feature, called Delegate Payments, was recently notified. Let’s understand how it works, its benefits, and the transaction restrictions.
Currently, those with bank accounts can use UPI services on their mobiles. However, individuals with a separate UPI ID are the only ones allowed to use it. The newly introduced circle feature changes this.
The primary UPI account holder can share the account with family members and acquaintances. This feature allows transactions using one’s bank account.
For example, a family can use this feature when they go shopping or dining or share it with school—and college-going children for their daily expenses.
It can also be used to monitor and manage household expenses using one bank account, making it a convenient and efficient tool for financial management.
NPCI introduced this feature for individuals without bank accounts who still rely on cash transactions. Payment service providers, including UPI apps, will soon incorporate this feature.
To use the delegate payment feature, the primary UPI holder must create a mandate and select contacts from their list. The primary user can choose up to five others as secondary users.
With all privileges, the primary user can set limits on cash and usage, ensuring complete control and security.
A maximum of Rs. 15,000 can be used for 5,000 transactions. All transactions done by the secondary users will be visible in the primary user’s UPI and bank account, providing reassurance and complete transparency.