UPI Circle is a feature introduced by the National Payments Corporation of India (NPCI) to enhance the Unified Payments Interface (UPI) experience. It allows users to create small groups or “circles” within their UPI apps to manage shared payments in a clear and organized manner. This is particularly useful for roommates, friends, or families to split bills, share expenses, and track group transactions transparently.
Each member of the UPI Circle can view contributions and dues, simplifying the process of collective payments. The goal is to make group financial interactions seamless, secure, and efficient within the existing UPI infrastructure.
How to Set Up UPI Circle?
Using UPI Circle is simple and seamless. Here’s a breakdown of how to set up:
Step 1: Open the BHIM UPI App
Open the BHIM UPI app on your smartphone to initiate the setup.. Make sure your UPI account is active and your bank account is linked.
Step 2: Go to “UPI Circle”
On the main screen or through the side menu, navigate to the ‘UPI Circle’ section. This will take you to the group payment section of the app.
Step 3: Create a New Circle
Tap on “Create Circle” and provide basic details such as:
- Circle Name – e.g., “College Trip Fund”
- Purpose – like rent, party, gifts, etc.
- Amount to Collect – set how much each member should pay
Step 4: Add Participants
Choose the contacts you wish to include as members in your circle. You can include friends, family, flatmates, or colleagues. The app will automatically send them a payment request.
Note: The participants don’t need to be BHIM users. They can complete the payment using any UPI app like Google Pay, PhonePe, Paytm, etc.
Step 5: Send Payment Requests
Once your circle is ready, hit “Send Request.” Each participant receives a notification asking them to pay the set amount through UPI.
Step 6: Track Who Paid
You can monitor the real-time payment status of each participant:
- Paid
- Pending
- Declined or No Response
This feature helps avoid confusion and manual tracking.
Step 7: Send Reminders
If someone hasn’t paid, just tap “Send Reminder” next to their name. The app will automatically send a gentle follow-up without needing a separate message.
Step 8: View Payment Summary
Get a full view of the circle’s progress:
- Total amount collected
- Who has paid and how
- Date and time of each transaction
- UPI app is used by participants
Step 9: Reuse or Close the Circle
Once all payments are done:
- You can close the circle, or
- Reuse it for regular collections (like monthly rent or team events)
Safe, Direct, and Transparent
All payments in UPI Circle are:
- Direct bank-to-bank UPI transfers
- No money is held in wallets
- Encrypted, secure, and private
How Does UPI Circle Work?
1. Initiation by Primary User
The main account holder (primary user) initiates a UPI Circle using their preferred UPI-enabled app (such as BHIM, PhonePe, Google Pay, etc.) that supports this feature.
2. Add a Secondary User
A secondary user is connected by providing their UPI ID or by having them scan a QR code generated in the app.. This links them to the Circle.
3. Set Permissions & Limits
The primary user configures transaction rules:
- Daily/transactional limits
- Whether approval is needed before each transaction
- Whether full access or partial access is granted
This ensures complete control and visibility over how funds are used.
4. Acceptance by Secondary User
The invited secondary user receives a request notification and must accept the invitation to become an active part of the UPI Circle.
5. Transaction Access
Once linked, the secondary user can perform UPI transactions (within the defined permissions), such as:
- Making bill payments
- Sending money
- Scanning QR codes
They do not need access to the primary user’s full bank account — only the UPI payment rights that were shared.
Purpose of the UPI Circle?
The purpose of UPI Circle is to simplify and streamline group payments and shared financial responsibilities. It is designed for situations where multiple people need to contribute to a common expense, such as roommates splitting rent, friends sharing a restaurant bill, or colleagues organizing a group gift.
By creating a UPI Circle, users can track contributions, send or receive payment requests, and monitor dues in a transparent and organized manner.
This feature reduces confusion, avoids repeated reminders, and enhances accountability among group members. In the end, UPI Circle is made to help you handle group payments more easily, quickly, and smoothly using your UPI app.
How Does UPI Circle Help You?
UPI Circle helps by making group payments simple, organized, and transparent. Whether you’re splitting rent with roommates, sharing bills with friends, or planning a trip with a group, UPI Circle lets you manage all expenses in one place.
It reduces the hassle of reminding people to pay, tracks who paid and who hasn’t, and ensures clear records of every transaction.
You can easily send or request money within the group, saving time and avoiding confusion.
Overall, it brings convenience, accountability, and clarity to shared financial responsibilities directly within your UPI app.
Requirements to add secondary UPI users:
To add secondary UPI users to a UPI Circle or group, the following requirements typically apply:
1. UPI-Enabled App:
All users must have a UPI-enabled app (like PhonePe, Google Pay, Paytm, etc.) installed on their smartphones.
2. Active UPI ID:
Every member of the group should have a working UPI ID that’s linked to their bank account.
3. Contact Information:
You must have the phone number or UPI ID of the person you want to add.
4. Same App Support
In some apps, all members may need to use the same app to access group features like UPI Circle
5. User Consent
The person you invite needs to agree and accept the request to join the group or circle.
Benefits of Using UPI Circle:
1. Secure Delegation of UPI Payments
With UPI Circle, you can safely authorize someone else (like a house help, employee, or family member) to make payments on your behalf, without ever sharing your UPI PIN, bank login, or sensitive account details.
2. Set Custom Limits and Permissions
You can define exactly:
- How much the secondary user can spend
- What kind of transactions they’re allowed to make
- Whether they need your approval before each payment
This gives you complete control over usage and avoids misuse.
3. Track Every Transaction
All payments made by the secondary user under your Circle are visible to you in real-time.
You can:
- Monitor transaction history
- Get alerts for each payment
- Track how much of the limit is used
4. Perfect for Families, Staff & Teams
UPI Circle is ideal for:
- Parents who want to allow their kids limited UPI use
- Seniors who want caretakers to make digital bill payments
- Business owners delegating petty cash access to staff
- Households where domestic helpers need to pay utility bills
No need to hand over your card or give bank access — UPI Circle does it better.
5. Modify or Revoke Anytime
If you feel the need to change the rules or remove someone from your Circle, you can do it anytime:
- Adjust daily/transaction limits
- Switch from full to partial authorization
- Revoke access instantly
6. No Need for Multiple Bank Accounts or Wallets
With UPI Circle, there’s no need to open a joint bank account or create separate wallets. The primary account stays the same — only access is shared with boundaries.
7. Improved Payment Efficiency at Home and Work
By delegating small, repetitive payments to trusted people (like paying bills, groceries, or deliveries), you save time and reduce the hassle of doing everything yourself.
Great for busy households, startups, or senior citizens.
8. Reduce Risk of Fraud from Sharing Credentials
Traditionally, people shared OTPs, cards, or banking logins with staff or family — which is risky.
With UPI Circle:
- You avoid that risk completely
- Transactions happen under set rules
- Only UPI access is granted — not full banking rights
NPCI rules for UPI Circle users:
To keep everything secure and controlled, NPCI has set some important rules:
- A primary user can add up to 5 trusted people as secondary users, and each of those secondary users can be linked to only one primary user at a time.
- Secondary users can have full delegation (pay up to ₹5,000 per transaction and ₹15,000 per month) or partial delegation (payments need the primary user’s PIN).
- There’s a 24-hour cooling period after adding a secondary user when transaction limits are stricter.
- Secondary users must authenticate using app passcodes or biometrics.
- Linking secondary users must be done via QR code scan or selecting from contacts — manual entry is not allowed.
- Primary users have full control to set limits, monitor transactions, and revoke access anytime.
- All transactions follow RBI guidelines for security and dispute resolution.
How UPI Circle Limits User Access
In a UPI Circle, the primary user has full control over how much the secondary user can spend. Limits can be set for daily transactions, the maximum amount per payment, and whether approvals are needed before sending money. These controls make UPI Circle a secure option for delegating payment access to trusted individuals while ensuring that spending stays within predefined boundaries.
Easy Ways to Keep Your Payments Safe
1. Use Only Verified UPI Apps
Download UPI apps only from official app stores like the Google Play Store or the Apple App Store. Avoid third-party or modified versions, as they can compromise your data.
2. Never Share Your UPI PIN
Your UPI PIN is like an ATM password—never share it with anyone, even if they claim to be from customer support. No real representative will ever ask for your PIN.
3. Enable App Lock and Phone Security
Use fingerprint or PIN locks on your UPI app and smartphone. It provides an additional security barrier if your phone ever gets misplaced or stolen.
4. Monitor Your Transaction History
Regularly check your transaction history to ensure there are no suspicious or unauthorized payments. Report anything unusual immediately.
5. Report Fraud Instantly
If you suspect any fraud or accidental transaction, report it to your bank or the UPI app’s customer care without delay. Nearly all UPI apps include a built-in option to raise complaints or report issues directly.
Conclusion
UPI Circle is a powerful feature that makes managing group finances effortless and secure. By enabling users to create trusted payment groups, delegate authority, and track shared expenses transparently, it simplifies everyday transactions among family, friends, or colleagues.
With built-in controls, spending limits, and RBI-backed security, UPI Circle offers a reliable way to handle collective payments without confusion or delays. As more people embrace digital payments, UPI Circle stands out as a convenient tool to promote financial collaboration and accountability within trusted circles, directly through the familiar UPI platform.
Frequently Asked Questions (FAQs):
1. How many secondary users can I add?
You can add up to 5 secondary users linked to your primary UPI account.
2. Can secondary users make payments independently?
Yes, depending on delegation type—full delegation lets them pay within limits without your PIN.
3. Is there a transaction limit for secondary users?
Yes, typically ₹5,000 per transaction and ₹15,000 per month under full delegation.
4. Do secondary users need a UPI app?
Yes, they need to have a UPI app installed and a valid UPI ID ready to use.
5. Can I revoke secondary user access?
Yes, primary users can modify or revoke access any time.
6. Are UPI Circle transactions secure?
Yes, all transactions are safe and secure, following NPCI rules, protected by your PIN and the app’s security features.
7. Is UPI Circle available on all UPI apps?
Not yet; availability depends on the app’s support for the feature.
8. How do I join a UPI Circle?
Simply open your UPI app and say yes to the invite sent by the main user.