How to Use UPI Circle: A Simple Step-by-Step Guide for Sharing Your UPI ID with Family and Friends

The Unified Payments Interface (UPI) has revolutionized digital payments in India, making transactions fast and easy. With the introduction of UPI Circle, a new feature that allows you to authorize others to transact from your UPI account, it’s now even easier to share your UPI ID with family members and friends. Whether you want to delegate financial responsibilities or offer a helping hand to loved ones, UPI Circle simplifies the process while ensuring security and control.

What is UPI Circle?

UPI Circle is a feature that enables a primary user to delegate transaction rights to secondary users, such as family members, friends, or trusted individuals. With UPI Circle, these secondary users can make payments and transactions from the primary user’s bank account, but with set limits. This feature is especially useful for those who do not have their own UPI account or prefer to use a single family bank account for convenience.

Key Benefits of UPI Circle

  • Family-friendly: Share UPI access with senior citizens, children, or others who might not have a bank account linked with UPI.
  • Convenience: Manage household, business, or personal expenses without needing to hand over cash or debit card details.
  • Control: The primary user retains full control over the spending limit and approval of transactions.

How to Set Up UPI Circle on Your BHIM-UPI App: A Step-by-Step Guide

In this guide, we’ll show you how to use the BHIM-UPI app to set up and manage your UPI Circle. The process is simple, and you can start sharing your UPI ID with others in just a few minutes.

Step 1: Open the BHIM-UPI App

Start by opening your BHIM-UPI app and navigating to the ‘UPI Circle’ option. Once selected, click on the ‘Add Family or Friends’ button.

Step 2: Add a Friend or Family Member

You can add a person to your UPI Circle in two ways: by scanning their QR code or by entering their UPI ID. Here, we’ll guide you through the UPI ID method.

  • Type in the UPI ID of the person you want to add.
  • Click on the ‘Add to My UPI Circle’ button.
  • You will be prompted to enter the phone number of the person you’re adding. Ensure that the person is in your contact list before proceeding.

Step 3: Set Access Permissions

You now have two options for delegating transaction rights to the secondary user:

  • Spend with Limits: Set a predefined limit on the amount they can spend.
  • Approve Every Payment: You will need to approve each transaction initiated by the secondary user.

Select the option that best suits your needs and proceed.

Step 4: Configure Limits and Authorization

If you selected the ‘Spend with Limits’ option, you will need to specify:

  • The monthly spending limit for the secondary user.
  • The end date for this delegation (when the authorization will expire).
  • Choose your bank account from which the money will be deducted.

Once you’ve entered all details, click on ‘Proceed’ and enter your UPI PIN to confirm.

And that’s it! The secondary user will now be added to your UPI Circle, and they can start using your account to make payments within the set limit.

Real-Life Use Cases for UPI Circle

Here are some scenarios where UPI Circle can be extremely helpful:

  • A parent supporting a college student: Parents can allocate a fixed amount of money to their child and control spending limits.
  • A senior citizen who needs assistance with digital payments: Delegating payment authority can help elderly family members without requiring them to learn UPI apps.
  • Busy professionals managing household expenses: A working professional can assign a trusted individual to handle regular household payments.
  • Business owners managing petty cash: Business owners can delegate certain expenses to staff without giving out cash.

What Banks and Financial Institutions Can Expect

According to experts, the UPI Circle feature could open new opportunities for banks, especially in attracting younger users to the financial ecosystem. As Maru from FSS explains, this feature may increase transaction volumes for banks and create stronger customer relationships.

Important Things to Know About UPI Circle

Before using UPI Circle, here are some important things to keep in mind:

  • App version: UPI Circle is available on BHIM-UPI app version 3.8.1 and above.
  • Save contact information: Ensure the UPI ID and phone number of the person you wish to add are saved in your contact list.
  • Control over funds: Your money remains secure, and you can monitor and approve transactions before they happen.
  • Activation delay: After setting limits, there’s a 30-minute activation period. However, secondary users can still request approval for urgent payments.
  • Find approval requests: You will receive approval requests via notifications, and you can also view them in the ‘Approve to Pay’ section of the app.
  • Cooling period: For new members, there is a 24-hour cooling period. During this time, transactions are capped at ₹5,000.

Conclusion

UPI Circle is a game-changer in digital payments, making it easy and secure to share UPI access with family, friends, and trusted individuals. By setting spending limits and controlling approvals, you can delegate payments with confidence and convenience. Whether you’re managing family expenses, supporting loved ones, or handling business transactions, UPI Circle offers a flexible and user-friendly solution.

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