UPI Circle: The Future of Group Payments in India

Introduction:

Now, with the growing technology, instead of going to the bank and transferring money, we have the facility to transfer money easily from our location through the UPI application on our mobile. Some new facilities are being improved day by day in the UPI applications. 

In that way, what we are going to see now is UPI Circle, i.e., people who do not have a bank account while keeping only one bank account. The facility of transferring money through the UPI Circle application of those who have that bank account has been revealed. 

To explain, if your father or mother is the only person having a bank account in your house, then you can use that one bank account to transfer money to other people in that family, i.e., children, parents, and some personal relations, up to a maximum of five people through UPI circle applications linked to it. .

 

How UPI Circle works: 

If only one person has a UPI linked to a bank account, then he is called the primary user, and those who use his UPI bank account for other people, i.e., those who do not have a bank account to make payments through his UPI, are called the secondary users. Here, the primary user authorizes the secondary user to make the payment. A secondary user can transfer money up to a maximum of $15,000 per month when using the primary user for spontaneous transfers. This is when the secondary user transfers money with the permission of the primary user. He can transfer money up to a maximum of $5,000 per month. 

 

The National Payments Council of India (NPCI) has introduced this facility for unbanked people to transfer money from a bank account to a bank account through the UPI circle in this UPI application. NPCI, i.e., the National Payments Corporation of India, is a non-profit organization recognized by the Reserve Bank of India and the Banks Association of India that is instrumental in regulating retail and wholesale transactions. 

 

How UPI works: 

To transfer money through the UPI application without your bank account number details, you can use your mobile number, Aadhaar card number, and email ID. There is a two-layer security facility, i.e., the first UPI code is given by NPCI and the second M-PIN code is given by banks. The UPI pin is the pin that is created the first time you use the app. M-PIN is a bank-approved phone number that can be issued by your bank. This is the pin that can be given by You can use any of these two as per your convenience. Here, UP stands for Unified Payment Interface, i.e., Unified Transaction Data. This concludes this article. Through this article, you can clearly learn about the technologies for money transfer that are currently in practice.

If "UPI Circle" refers to a conceptual or thematic discussion about Unified Payments Interface (UPI) in a holistic manner, it might encompass the following aspects:

1. Introduction to UPI Circle

The UPI Circle represents a dynamic ecosystem of stakeholders in India’s digital payment landscape. It includes banks, fintech companies, merchants, government bodies, and users who interact to facilitate seamless and secure financial transactions. UPI's design ensures interoperability among various participants, making it a crucial element in India's journey towards a cashless economy.

2. Core Components of the UPI Circle

The UPI Circle operates through multiple interconnected components:

• Banks: UPI's backbone, enabling account linking and payment processing.
• Users: Individuals or entities utilizing UPI apps for transactions.
• Fintech Platforms: Providers like PhonePe, Google Pay, and Paytm offer user-friendly interfaces for accessing UPI services.
• Merchants: Businesses integrate UPI for payments, ranging from local shops to e-commerce giants.
• Regulators: The Reserve Bank of India (RBI) and NPCI ensure compliance, security, and innovation.

3. Features of the UPI Ecosystem

• Peer-to-Peer (P2P) Transfers: Users can send or receive money instantly via UPI IDs or QR codes.
• Merchant Payments: UPI supports online and offline merchant transactions, including subscriptions and recurring payments.
• Innovative Solutions: Features like UPI AutoPay and international remittances are expanding its utility.

4. Benefits of the UPI Circle

• Convenience: Simplifies transactions without the need for account numbers or IFSC codes.
• Accessibility: Provides digital payment access to urban and rural areas alike.
• Cost-Effective: No transaction fees for most UPI services.
• Interoperability: Users can transact across different banks and apps.

5. Challenges in the UPI Circle

Despite its success, the UPI Circle faces challenges:

• Fraud and Security Risks: Rising cases of phishing and scams require stringent safeguards.
• Infrastructure Issues: Ensuring smooth operations in rural areas with limited internet connectivity.
• Transaction Volumes: Managing high transaction loads during peak times.

6. Future of UPI Circle

The UPI Circle is set to grow further with initiatives like linking UPI with international payment systems, expanding its global footprint. Innovations like UPI Lite for offline payments and credit-on-UPI services aim to strengthen its position as a comprehensive payment solution.

The UPI Circle is not just a payment method but a transformative force reshaping how India transacts. By fostering inclusivity, security, and innovation, it continues to set benchmarks in t

he global digital payment space.

Which app support UPI circle:

As of January 2025, the UPI Circle feature is available on the BHIM UPI app. Other platforms, such as PhonePe and Google Pay, are yet to roll out this feature. Several banks, including SBI, HDFC, and ICICI, support UPI Circle.

UPI Circle allows a primary user to authorize a trusted individual (secondary user) to perform transactions from their UPI account within set limits. This feature streamlines financial management for families and caregivers, ensuring efficient handling of expenses.

To set up UPI Circle on the BHIM app, follow these steps:

• Open the BHIM app and navigate to the UPI Circle feature.

• Add a trusted individual as a secondary user by scanning their QR code or entering their UPI ID.

•Set transaction limits for the secondary user as per your prefere

nce.

Conclusion:

In this article, I have mentioned UPI Circle, which is the new future of UPI. Up to five people can use the same bank account using this UPI circle. This Advance Future is useful for those who do not have a bank account. I hope this article on UPI Circle is useful for everyone.