Unified Payments Interface (UPI) has transformed how India transacts — enabling instant, secure, and cashless payments directly from bank accounts. But until recently, one limitation remained: a user needed a bank account to access UPI. That’s where UPI Circle steps in.
UPI Circle is a new feature introduced within the UPI framework that allows individuals without a bank account to use UPI through a trusted person — typically a family member or close contact who does have an account. Think of it as a circle of trust, where one verified user (called the primary user) can enable UPI access for others (called secondary users), allowing them to make digital payments even if they don’t have an account of their own.
This model opens the doors of digital finance to a larger audience — especially minors, elderly citizens, or those who haven't yet opened a bank account but still need to participate in the growing digital economy.
Purpose of UPI Circle
The primary goal behind launching UPI Circle is financial inclusion. It’s designed to bridge the gap between the banked and unbanked population, giving everyone a fair opportunity to participate in digital transactions.
For many households, children and senior citizens often don’t operate their own bank accounts. With UPI Circle, parents can empower their kids to make limited digital purchases, while caregivers can help the elderly go cashless — all under controlled and secure oversight.
This approach also helps in reducing dependency on cash in everyday transactions. By giving non-account holders access to UPI through someone they trust, people can pay digitally at stores, send money, or manage small expenses — without needing to carry physical cash.
Additionally, UPI Circle is expected to significantly boost the user base of the UPI ecosystem. By unlocking access for those previously left out, it supports India's broader goal of becoming a truly digital-first economy.
Check out Blog: UPI ID: Fast and Easy Payments in India
Benefits of UPI Circle for Group Payments
UPI Circle brings a smart solution to managing shared expenses within families, friend groups, or small teams. Whether it’s splitting restaurant bills, managing household expenses, or pooling funds for group activities, UPI Circle enables seamless delegation and transparent tracking.
It eliminates the need for informal calculations or repeated reminders. Since the primary user can view and manage every transaction within the Circle, it adds clarity and reduces the friction often associated with shared spending.
How Does UPI Circle Work?
Step 1: The process begins with the primary user initiating a UPI Circle using their preferred UPI-enabled app.
Step 2: They then add a secondary user to the Circle, either by entering their UPI ID or scanning a unique QR code.
Step 3: The primary user proceeds to configure permissions — including transaction limits and authorization settings, with the flexibility to grant either full or partial control.
Step 4: The secondary user receives an invitation to join the Circle and must accept it to activate access.
Step 5: Once the setup is complete, the secondary user can start making UPI payments — all within the limits and rules defined by the primary user.
To support such shared access systems, it becomes essential to have reliable infrastructure that can instantly verify user identities and UPI handles. ZOOP’s UPI Verification API helps businesses and platforms ensure that UPI IDs are active, valid, and securely linked to the intended user — a crucial step in building trust and preventing misuse, especially in multi-user or delegated payment setups like UPI Circle.
Read: What is UPI ID Verification?
Types of Delegation in UPI Circle
UPI Circle introduces two flexible models of access, giving primary users the ability to manage how much control they want to offer to secondary users:
Full Delegation
In this model, the primary user sets a predefined limit for UPI usage. The secondary user can then make payments freely within that limit. According to NPCI guidelines, the maximum monthly transaction cap is ₹15,000, and each transaction is restricted to ₹5,000.
Partial Delegation
Here, the secondary user must send a payment request for each transaction. The primary user reviews and approves the request by entering their UPI PIN. This setup offers more control and is suitable for situations where closer oversight is required.
How to Link UPI for Secondary Users
Setting up UPI access for a secondary user is a simple and secure process, designed to ensure that control always remains with the primary account holder. Here's how it works:
To begin linking, the primary user must either scan a QR code or select the secondary user directly from their contact list. UPI apps do not allow manual entry of mobile numbers for security reasons — the contact must already exist in the phonebook of the primary user.
Once the contact is selected, the linking process begins, and the secondary user will receive a request to join the UPI Circle. After the invitation is accepted, the secondary user gains access to make payments based on the settings defined by the primary user.
UPI Circle Compliances and Guidelines
NPCI Guidelines for UPI Circle Users
To ensure the safe use of shared UPI access, the National Payments Corporation of India (NPCI) has issued several important guidelines:
- Independent Experience: Both primary and secondary users can use the UPI app of their choice — there’s no restriction on which app each user must use.
- Authentication Required: All secondary users must verify their identity using either biometric authentication or an app-level password.
- User Limitations: One primary user can link up to five secondary users or devices. However, a secondary user can be linked to only one primary user at a time.
- Transaction Limits: As a security measure, the overall monthly limit for secondary users is ₹15,000, with a per transaction cap of ₹5,000. During the first 24 hours after linking, this limit remains capped at ₹5,000 for all transactions.
- Access & Visibility: The primary user has full visibility and control — including access to the transaction history and the ability to view account activity related to the secondary user’s transactions.
- Authorization Control: The primary user decides whether to provide full or partial delegation and can modify or revoke access at any time.
Security and Compliance for UPI Circle
NPCI has mandated that all existing RBI guidelines related to UPI dispute resolution, turnaround time, and customer compensation for failed transactions continue to apply under the UPI Circle framework. UPI apps are also required to maintain Online Dispute Resolution (ODR) mechanisms to ensure smooth issue handling.
The UPI Circle feature has been developed with a clear focus on financial inclusion, particularly for households where only one member has a bank account. By offering controlled and secure access to UPI, this system allows other family members — like children, elderly parents, or non-account holders — to participate in digital payments without needing an account of their own.
Read: Necessity of Bank Account Verification
Tips to Make Your UPI Circle More Secure
1. Use App Locks on UPI Apps
Enabling app-level security is your first line of defense. Adding an app lock ensures that only you can access your UPI app, protecting your transactions from unauthorized access.
2. Set a Strong UPI PIN and Enable 2FA
Always choose a secure, unpredictable PIN — and avoid simple number combinations. Where possible, turn on two-factor authentication for added protection.
3. Verify Requests Before Approving
If you're using partial delegation, always double-check the amount and recipient before approving any transaction. This step reduces the risk of errors or fraud.
UPI Circle Transaction Limit
To ensure secure and controlled usage, the UPI Circle feature comes with a transaction cap defined by the National Payments Corporation of India (NPCI). The primary user can assign a monthly spending limit to the secondary user — up to a maximum of ₹15,000 per month, with a per transaction cap of ₹5,000.
This limit-based system enables smooth, small-value transactions while maintaining full oversight. Once the delegation is set, secondary users can initiate and complete payments within the approved limit — no UPI PIN entry is needed from the primary user, making day-to-day transactions faster and more convenient for trusted members.
How to Add or Remove Members in a UPI Circle
Managing your UPI Circle is straightforward. Here’s how it works:
To add a member, the primary user must open their UPI app, navigate to the UPI Circle feature, and select ‘Add Family or Friends’. They can either scan the invitee’s QR code or select them from their contact list. Once added, permissions such as transaction limits and access type (full or partial) can be configured.
To remove a member, the primary user simply accesses the Circle settings, selects the user to be removed, and confirms the removal. This instantly revokes their access to make payments through the Circle.
The UPI Circle dashboard also allows the primary user to update limits, monitor transactions, and adjust roles as needed — all in real-time.
UPI Circle User Limits
Each primary user can add up to five secondary users or linked devices under one UPI Circle. This makes it ideal for families, dependents, or small groups that require limited access to a shared UPI account. However, a secondary user can only be linked to one primary user at a time, ensuring clear ownership and accountability.
FAQs About UPI Circle
1. When will UPI Circle be available on PhonePe?
As of now, there's no official release date for UPI Circle on PhonePe. However, it’s expected to roll out on major UPI apps in the near future.
2. What happens if I remove someone from my UPI Circle?
Removing a member instantly revokes their access. They will no longer be able to make payments using your UPI credentials or view any related transaction data.
3. Can I use UPI Circle for business purposes?
While UPI Circle is designed for personal use, it can be applied to small-scale business scenarios. For example, business owners may delegate payment permissions to staff members for routine expenses like fuel or tolls.
4. How do I view UPI Circle transaction history?
To view transaction history, open your UPI app and go to the Circle or transaction log section. You’ll be able to see all payments made by both primary and secondary users, along with timestamps and status.
5. Will there be any charges to use UPI Circle on Google Pay?
UPI Circle hasn’t launched on Google Pay yet, and no pricing details are available. Typically, UPI services are free of charge, but it’s best to review the app's terms when the feature becomes available.
6. Can I link UPI Circle with an international bank account?
No, UPI Circle is currently limited to Indian bank accounts only. It does not support international banking channels. For cross-border payments, alternative services should be considered.
