What is UPI Circle and How Does it Work?

Meera owns a bakery in Indore.

Her daughter Anaya, a class 11 student, often helps with the business. But since Anaya doesn’t have her own bank account, she borrows Meera’s phone to make UPI payments for any purchases.

Last week, Meera activated the UPI circle. Now Anaya uses the same UPI ID on her own phone with limits and permissions set by Meera.

This is exactly what the UPI circle is designed for.

Here’s everything you need to know about UPI circle, how it works, how to activate it, and why it’s becoming a popular choice across India.

What is UPI Circle?

UPI transactions reached 20.7 billion in October 2025, and there are over 420 million UPI users at present. However, this accounts for only half of the country's population, and the gap primarily stems from the fact that millions of Indians lack access to formal banking services.

To bridge this gap, NPCI introduced the UPI circle in August 2024, enabling controlled access for multiple users sharing the same UPI ID. There is one primary user who can add secondary users. These users can make UPI payments in accordance with the rules defined by the primary user.

Secondary users can transact without accessing the primary holder's full bank account details. This service promotes digital inclusion and reduces cash dependency, while providing individuals with regulated access to funds.

Also Read - From Cash to Clicks: How UPI Is Changing the Way India Spends

How Does UPI Circle Work?

Meera, the primary user, created a UPI Circle, added Anaya as a secondary user and set a daily payment limit of ₹ 1,000.

Anaya can now make payments independently, but Meera still stays in control.

Here’s how to use a UPI circle:

1. Create the UPI circle, become the owner (primary user) and control access.
2. Add individuals with their mobile numbers as a secondary user.
3. Choose between the two kinds of delegation.

• Complete Delegation: If you want a secondary user to transact without your control.
• Partial Delegation: Certain payments, such as high-value payments, require confirmation from the primary user.

4. NPCI has set the following transaction limits for UPI circles.

• ₹5,000 per transaction/device
• ₹15,000 monthly limit/device
• ₹2,000 maximum limit for the first 24 hours after linking a new device
• Maximum of 5 secondary devices

5. You will (primary user) receive an immediate notification to approve or decline if the secondary user performs a high-value transaction.
6. The UPI circle has several security features to prevent fraud.

How to Activate UPI Circle? Step-by-Step Guide

Here are the steps to set up a UPI circle.

Step 1: Open UPI Settings

Make sure you’re using the latest version of a UPI app and look for options like:

• UPI Circle
• Delegated UPI Access
• Shared UPI ID

Step 2: Prerequisites for Setting Up a UPI Circle

• Primary User: Should hold an active bank account linked to a UPI application
• Secondary User: Must have the same UPI app installed on their phone
• Contact Information: The secondary user's mobile number must be saved in the primary user's phone contacts

Step 3: Add Secondary Users

Enter mobile numbers of the individuals you want to add as secondary users, and they’ll be prompted to join the circle.

Step 4: Set Permissions

Choose what the secondary user is allowed to do, and set the transaction limits. You can change the permissions and limit any time.

Secondary users are added once you verify with a PIN.

Note - Primary users have the permission to delete secondary users or the entire UPI circle.

Benefits of UPI Circle in India

UPI Circle, a secure NPCI-regulated service, solves real-world problems. Here is why millions of people are using it -

1. People without bank accounts, like children, seniors, helpers, and workers, can pay digitally with safety.
2. Parents can give controlled access to UPI without having to share their phone or credit card.
3. Store owners can enable staff to accept payments without disclosing bank information.
4. You get to decide what secondary users can pay for and how much.
5. Primary users receive complete visibility into all the outgoing transactions. They can instantly block users to mitigate risk.

Also Read: How UPI Is Redefining Instant Loan Repayments in India

UPI Circle: Makes Everyday Payments Effortless

UPI Circle is an easy, family-friendly way to make digital payments. It allows you to share a UPI ID with anyone you trust, eliminating the hassle of switching between devices or accounts.

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FAQs (Frequently Asked Questions)

Can I use UPI Circle with multiple bank accounts?

No. Only one UPI Circle can be linked to one bank account.

Is UPI Circle safe for business use?

Yes. It’s ideal for shops where several staff members accept payments.

How many secondary users can I add?

A maximum of five secondary users can be added.

Can secondary users view my full bank history?

No. They can only see the payments they make.

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