What is UPI Circle and How Does it Work?

Key Takeaways

• UPI Circle allows a primary user to share UPI payment access with up to five trusted users while retaining full control over permissions and spending limits.
• It is useful for children, elderly parents, household staff, and shop assistants who may not have their own bank account.
• Primary users can choose full delegation (independent payments) or partial delegation (approval required for each transaction).
• NPCI limits UPI Circle transactions to ₹5,000 per transaction and ₹15,000 per month per secondary user.
• Users can set, modify, or revoke permissions anytime and receive visibility into all delegated transactions.
• UPI Circle improves convenience, financial inclusion, and security without sharing bank account details or devices.

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 Circle is an NPCI feature, launched in August 2024, that lets one bank-account holder (the primary user) authorise up to five trusted family members or staff (secondary users) to make UPI payments from the primary user's bank account through their own phones with the primary user retaining full control over transaction limits and approvals. It enables digital payments for people who don't have their own bank account, such as children, senior parents, domestic staff, or shop assistants, without sharing a phone or disclosing account details.

Why NPCI introduced UPI Circle for families:

• Financial inclusion for non-banked dependents - children below 18, seniors who haven't opened a bank account, and household staff can transact digitally
• Avoid risky phone-sharing - eliminates the practice of handing over an unlocked phone with an active UPI session
• Controlled access for minors and seniors - primary user can cap spending and require approval for high-value transactions
• Reduces cash dependency for everyday household payments where the principal account-holder isn't physically present

When to Use UPI Circle Instead of Sending Money Directly

UPI Circle is the better option whenever the recipient needs recurring small-value access to your funds rather than a one-off transfer, and especially when the recipient does not have their own bank account or UPI ID. Use direct UPI transfers when the recipient has their own account and needs full custody of the funds.

Use UPI Circle when:

• Your child under 18 needs to pay for school canteen, books, or coaching but has no bank account
• Your elderly parent needs to make pharmacy or grocery payments but isn't comfortable maintaining a separate bank account
• Your domestic staff (cook, driver, helper) makes errand-based purchases on your behalf, where a fixed daily cap is preferred over carrying cash
• Shop staff accepts payments at your counter but you don't want to expose your full bank credentials
• You want per-transaction visibility and the option to block a delegate instantly if a phone is lost

Use direct UPI transfer when:

• The recipient has their own UPI ID and full custody is appropriate
• It's a one-time payment (gift, refund, settlement) and not a recurring access need
• The recipient's spending should not be visible to you
• The amount needs to exceed Rs 5,000 in a single transaction (UPI Circle's per-transaction cap)

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 secondary users.

3. Yes the primary user can set granular spending controls for each secondary user (dependent), choosing between two NPCI-defined delegation modes:

• Full Delegation: The secondary user can transact independently within the per-transaction and monthly caps set by the primary user. Suited for trusted adults like elderly parents or long-tenure household staff.
• Partial Delegation: Each transaction by the secondary user requires real-time approval from the primary user via a push notification. Suited for minors and new delegates where every spend should be reviewed.

4. NPCI-mandated transaction limits for UPI Circle (apply across all apps):

• Rs 5,000 per single transaction per secondary device
• Rs 15,000 monthly limit per secondary device
• Rs 2,000 maximum spend allowed in the first 24 hours after a new secondary device is linked (anti-fraud cooling-off)
• Maximum of 5 secondary users (devices) linked to one primary UPI ID

The primary user can lower these caps further inside the app (e.g., set a Rs 500 daily limit for a child) but cannot raise them above the NPCI ceiling. Permissions can be edited or revoked at any time.

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 Payment 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.

Also Read: How to Increase Your UPI Transaction Limit

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 Feature: Delegation Categories

UPI Circle is a feature that allows a primary user to delegate payment access to trusted users with defined controls. It offers two main delegation types:

• Full delegation: Secondary users can make payments independently within set limits, without requiring approval.
• Partial delegation: Payments need approval from the primary user or follow strict limits for better control.

These options ensure flexibility while maintaining security and clear oversight of shared transactions.

How Do You Add Friends and Manage UPI Circle Groups?

UPI Circle makes it easy to add, remove, and manage members for shared payments.

• Add Members: Open your UPI app, go to UPI Circle, tap “Add Family or Friends,” enter their UPI ID or scan a QR code, then assign roles and limits.
• Remove Members: Go to Circle settings, select the member, and confirm removal.
• Manage Settings: Set transaction limits, monitor activity, and adjust permissions to maintain control and transparency.

User Limits for UPI Circle

In a upi mandate setup under UPI Circle, user limits define how much and how often transactions can be executed. Primary users can assign spending caps to secondary users, ensuring controlled and secure payments. Typically, banks set daily and per-transaction limits aligned with NPCI guidelines, often up to ₹1 lakh, though it may vary. These limits help manage risk, prevent misuse, and offer better financial oversight. Always review your bank’s policy to optimize your upi mandate usage within defined thresholds.

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)

1. Can I use UPI Circle with multiple bank accounts?

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

2. Is UPI Circle safe for business use?

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

3. How many secondary users can I add?

A maximum of five secondary users can be added.

4. Can secondary users view my full bank history?

No. They can only see the payments they make.

5. Is there a "cooling-off" period after setting up a new UPI Circle delegation?

Yes, some apps may apply a short cooling-off period before delegated users can start making transactions independently.

6. What are the specific transaction limits for UPI Circle?

Transaction limits depend on the app and bank, with caps set per transaction, daily usage, or monthly spending.

Disclaimer: The information provided in this blog post is intended for informational purposes only. The content is based on research and opinions available at the time of writing. While we strive to ensure accuracy, we do not claim to be exhaustive or definitive. Readers are advised to independently verify any details mentioned here, such as specifications, features, and availability, before making any decisions. Hero FinCorp does not take responsibility for any discrepancies, inaccuracies, or changes that may occur after the publication of this blog. The choice to rely on the information presented herein is at the reader's discretion, and we recommend consulting official sources and experts for the most up-to-date and accurate information about the featured products.