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The National Payments Corporation of India (NPCI) has introduced a new feature called ‘UPI Circle’ on its Unified Payments Interface (UPI) platform.
About UPI Circle
- This feature allows primary UPI account holders to securely delegate payment responsibilities to trusted secondary users.
- UPI Circle-Delegate Payments is a feature where a UPI user acts as a primary link with their trusted secondary users on their UPI App for either partial or full delegation.
- This innovation will not only drive convenience but also enhance security by reducing the risk of fraud within these trusted ecosystems.
- Additionally, UPI Circle can be leveraged for creating micro-communities within gig economies or collaborative platforms, where members can easily settle payments or pool resources in real time.
- The versatility of this feature holds the potential to significantly broaden the scope of UPI beyond just individual transactions, enabling it to cater to more niche, group-based financial interactions.
- UPI Circle allows multiple people to share a single UPI ID.
- Primary users set access limits for secondary users, with options for full or partial delegation.
- Full delegation permits transactions up to Rs. 15,000 per month; partial requires primary user approval.
- Security includes mandatory biometric or app passwords for secondary users, with primary users controlling access and viewing transaction history.
How do UPI Circle-Delegate payments work?
- Primary User: The account holder who initiates the Circle and controls the delegation.
- Secondary User: A trusted individual granted partial or full access to the account for making payments.
UPI Circle enables two types of delegation:
- Full Delegation: The primary user authorises the secondary user to initiate and complete transactions within predefined spending limits, without requiring further approval.
- Partial Delegation: The secondary user can initiate transactions, but the primary user must authenticate and finalise the payment using their UPI PIN.
Source: IE
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