A Complete Guide to UPI Circle and Delegated Transactions

UPI Circle is a smart digital solution that lets you authorise a trusted secondary user to make UPI payments directly from your bank account. As the primary user, you stay in full command by setting specific transaction limits, ensuring your money stays secure while giving others the freedom to pay.

This feature is ideal for parents, students and business owners who want to simplify shared expenses. It removes the need for carrying cash or managing multiple bank accounts, creating a smooth, transparent payment workflow without compromising your safety.

What is UPI Circle and How does it Work?

UPI Circle is a feature under Unified Payments Interface (UPI), introduced by the National Payments Corporation of India (NPCI). It allows one person to authorise another to make UPI payments from their bank account.

Under the UPI Circle, the account holder, whose bank account is used for payments, is the primary user. The person given access is the secondary user. The primary user decides who can be added and how much they can spend.

How It works: How to Set-Up UPI Circle

UPI Circle follows a simple flow where access is set once and used when needed:

Step 1: Initiate the Circle

The primary user begins the process by selecting the UPI Circle feature within their preferred UPI app.

Step 2. Add the Secondary User

You link the secondary user to your account by entering their unique UPI ID or quickly scanning their QR code.

Step 3: Define Limits and Preferences

The primary user sets specific transaction limits and chooses an authorisation style, either approving every payment manually or delegating full permission for instant spending.

Step 4: Accept the Invitation

The secondary user receives the request and accepts it through their UPI app. Once accepted, the access becomes active.

Step 5: Start Secure Transactions

With the setup complete, the secondary user can now perform UPI transactions, strictly following the permissions and boundaries defined by the primary user.

What is the UPI Circle Transaction Limit?

The primary user decides how much money the secondary user can spend each month. As per NPCI rules, secondary users have a per transaction limit of ₹5,000 per device, while the monthly limit is capped at ₹15,000. There’s also a cool-off period for newly linked UPI IDs where both primary and secondary users have lower per transaction limit of ₹5,000 during the first 24 hours. 

Understanding NPCI Guidelines for Primary and Secondary Users in UPI Circle

To keep your money safe and the process hassle-free, the NPCI has established these security rules for UPI Circle.

1. Choice of Apps

Both the primary user and secondary user can use different UPI apps. There is no requirement for both parties to use the same platform for the delegation to function smoothly.  

2. Secure Verification

To ensure security, secondary users must use biometric verification or an app password to authorise payments. This confirms that only your trusted user can complete a transaction.

3. Circle Limit

A primary user can add up to 5 secondary users. However, a secondary user can only be linked to one primary user at a time.

4. Spending Caps

Secondary users have a monthly transaction limit of ₹15,000, with a maximum of ₹5,000 for any single transaction.

5. Flexible Control

The primary user decides the level of freedom to give either approving every payment manually or letting the secondary user pay instantly within set limits.

6. Total Financial Transparency

The primary user stays in total control. You can track all the secondary user’s transactions and even see them in your bank statement.

7. Initial Security Buffer

During the first 24 hours after linking, a secondary user is restricted to a total spending limit of ₹5,000. This temporary cap serves as a “cool-off period’’ to prevent any immediate unauthorised activity.

Managing Your UPI Circle

1. Adding a User

• Open UPI Circle in your app and tap ‘Add Family or Friends’.
• Enter their UPI ID or scan their QR code
• Assign them as a secondary user and set their spending limits.

2. Removing a User

• Open your Circle settings
• Select the member and confirm their removal to remove access instantly.

3. Control Features

• Set monthly or per-transaction spending caps to keep your budget under control.
• Review transaction history at any time to monitor all spending activity.
• Switch between full and partial delegation to instantly adjust a user’s level of freedom.

How Can UPI Circle Help Families?

UPI Circle can be useful in several family-related situations:

• For senior family members who may not be familiar with using UPI but still need to make digital payments
• For children or younger family members who may not yet use UPI independently
• When a family member is unable to complete a UPI payment due to insufficient balance or network issues
• When there are temporary issues with one person’s bank account, but payments still need to be made
• When you want to avoid managing multiple UPI IDs or apps
• When you want to monitor your children’s spending while allowing them to make payments.