UPI Circle lets you make payments for friends and family. Here's how it works.

For S Anand, managing household expenses for her ageing parents had always been a challenge. Her father, a senior citizen, often hesitated to make digital payments himself, worried about entering incorrect details or navigating complex UPI interfaces. Anand found herself either making payments for him or transferring the money from her own account, which was both inconvenient and time-consuming. 

However, with the introduction of UPI Circle, these troubles are now in the past. “UPI Circle has been a lifesaver,” Anand said. “It allows me to make payments directly from my father’s account with his authorisation, saving us both time and effort. The process is seamless and gives my father peace of mind, knowing he’s in control.”

How does UPI Circle work?

The UPI Circle feature allows a primary user (like Anand’s father) to authorise a secondary user (Anand) to transact from their bank account. The primary user sets a transaction limit—up to ₹15,000 a day in case of full delegation—ensuring control over spending. 

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A primary user can delegate payments to up to five secondary users. However, to make it easier to manage payments and prevent confusion, a secondary user can only accept delegation from one primary user at a time.

All users must be registered on the BHIM app for this feature to work.

Which banks and apps offer UPI Circle?

Currently, UPI Circle is live on the BHIM UPI app, with support from leading banks such as SBI, HDFC Bank, ICICI Bank and many more. However it is not yet live on popular UPI apps such as PhonePe and Google Pay.

How to activate it

• Download the BHIM UPI app and link your bank account
• Navigate to the UPI Circle section
• Add family or friends by entering their phone numbers or UPI IDs
• Select delegation type
• Set a transaction limit (if you want full delegation)
• The primary user can revoke authorisation at any time

Partial vs full delegation

UPI Circle allows the primary users to partially or fully delegate payments to a secondary user. 

With full delegation, the primary user authorises a secondary user to initiate and complete UPI transactions within defined spending limits. The monthly limit here is ₹15,000 per secondary user, with a ₹5,000 limit per transaction. 

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With partial delegation, when the secondary user initiates payment requests, the primary user must authorise the transaction by entering their UPI PIN. There are no transaction limits with partial delegation, apart from the existing UPI limit that applies to the primary user (this is set by the user’s bank or UPI app and is typically ₹1 lakh per day).

Convenience with security

“UPI Circle has bridged the gap between convenience and control,” said Anand, recalling how easy it was to set it up. “I added my father as the primary user, and within minutes I was authorised to make payments from his account. The app even sends him SMS alerts for every transaction, so he feels reassured.”

UPI Circle can also be useful in everyday scenarios. For instance, parents can authorise their college-going children to make payments for essentials such as travel, food and stationery while maintaining control over spending. 

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Anand said, “Previously, if I needed to pay for something on behalf of my father, I had to transfer the money to my account first. This not only took extra time but also complicated my account statements. With UPI Circle, the money is directly debited from his account, making the process much cleaner.”

The feature strikes a balance between convenience and security. The monthly limit in case of full delegation ensures that even if the secondary user misuses the account, the financial risk is minimised. The primary user also receives real-time notifications for every transaction, which ensures transparency. “Knowing that I can revoke access anytime adds an extra layer of comfort,” Anand said.