In a bid to increase the coverage and ease of digital transactions, the National Payments Corporation of India (NPCI) has announced ‘UPI Circle’ feature that allows the primary user to transfer payment authority to the secondary user. This innovation is expected to change the way the vulnerable groups including the children, the elderly and the household help in the management of their daily needs.
'UPI Circle' is intended for people who do not have their own bank accounts or are too skeptical about digital payments. Primary users can include relatives or friends as secondary users and this enables the secondary users to transact directly from the primary user’s account. This feature is especially helpful when parents are giving allowances to children, elderly people who are reluctant to do online transactions, and business people who are giving petty cash to their employees.
As a measure towards safe and controlled transactions, NPCI has put in place certain security measures. Primary users have two options: “Spend With Limits” and “Approve Every Payment”. The former enables only secondary users to make payments up to a certain level without the approval of the primary user while the latter demands the approval of the primary user every time the transaction is made. Moreover, primary users can track all the transactions in real time, which means complete transparency and control.
Secondary users are subject to transaction limits: Rs 5,000 in the first 24 hours and a maximum of Rs 15,000 per month. Primary users can set different limits for different secondary users. The procedure to create a UPI Circle is quite simple; primary users can add secondary users through the UPI ID, QR code scan, or by phone contacts. Secondary users can begin to make payments as soon as they are accepted into the system.
This feature is believed to boost the uptake of UPI among young consumers and the elderly. In this way, it is possible to help financially dependent individuals to make secure transactions. Hence, with UPI Circle, NPCI is ready to revolutionize the digital payment space and make it more accessible for all users.
