India's digital payments landscape has evolved significantly with the introduction of UPI Circle by the National Payments Corporation of India (NPCI). This innovative feature facilitates delegated payments, ensuring both security and oversight, thereby enhancing financial inclusivity and simplifying the management of household and business payments.

Understanding UPI Circle

UPI Circle enables a Primary User to authorize a Secondary User to conduct UPI transactions within predefined spending limits. This breakthrough allows individuals without personal bank accounts, such as elderly family members, children, and domestic staff, to participate in digital payments securely.

Operational Mechanics

Primary users can either approve each transaction individually using their UPI PIN or set predefined limits, offering flexibility and control. This system is designed to efficiently delegate financial tasks while maintaining oversight.

Addressing the Digital Divide

Despite the growth of UPI, a significant portion of the Indian population still relies on cash due to limited digital literacy or access to personal bank accounts. UPI Circle aims to bridge this gap, enabling safer digital transactions for non-users.

Practical Applications

From parental oversight to supporting senior citizens and facilitating business operations, UPI Circle offers a range of applications that promote financial inclusion and reduce cash dependency.

Integrated with the BHIM app, UPI Circle combines security with ease of use, allowing users to choose their preferred level of control. This feature represents a significant step towards a more inclusive financial ecosystem, making digital transactions accessible to a broader audience without compromising safety.