NPCI has launched "UPI Circle," allowing primary users to delegate payment responsibilities to trusted secondary users.
In a recent UPI Steering Committee meeting on August 3, 2023, the introduction of “UPI Circle – Delegate Payments” was unanimously endorsed, enabling National Payments Corporation of India (NPCI) to launch the same.
The Unified Payments Interface (UPI) has revolutionised digital payments, offering users unparalleled convenience. However, many still rely on cash due to limitations in managing personal accounts. Addressing this gap, NPCI has launched “UPI Circle,” allowing primary users to delegate payment responsibilities to trusted secondary users.
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This innovative feature enables UPI users to designate trusted secondary users through their UPI apps, granting them authority for either partial or full transactional activities.
Under full delegation, primary users can authorise secondary users to initiate and complete UPI transactions within preset spending limits. For partial delegation, secondary users can initiate payment requests, which the primary user finalises with their UPI PIN.
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To ensure secure and seamless transactions, specific guidelines have been established:
- UPI apps and Payment Service Providers (PSPs) must offer distinct user journeys for primary and secondary users, allowing each to choose their preferred UPI app.
- Mandatory security measures like app passcodes or biometrics (finger/face recognition) are required for all secondary user transactions.
- Initially, secondary users are linked via QR code scanning or by selecting from a contact list. Manual entry of mobile numbers is restricted to enhance security.
- Each primary user can delegate to up to five secondary users, while each secondary user can accept delegation from only one primary user.
- Limits and controls are enforced, with a maximum monthly limit of ₹15,000 and a per-transaction cap of ₹5,000 for fully delegated accounts. Existing UPI limits apply for partial delegations.
- A cooling period of 24 hours follows successful linking, during which a daily transaction limit of ₹5,000 is imposed for both full and partial delegations.
- Primary users maintain visibility of all transactions conducted by secondary users through their UPI app and bank statements.
- Compliance with RBI guidelines on Turn Around Time (TAT) and customer compensation for failed transactions is mandatory.
- Online Dispute Resolution (ODR) facilities are integrated for UPI transactions, ensuring swift resolution of issues.
- Reconciliation processes align with existing UPI guidelines, introducing specific purpose codes and settlement procedures for UPI Circle transactions.
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For detailed procedural information, members are encouraged to consult the UPI Circle Procedural Guidelines.
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