UPI Circle launched on Bhim app

UPI Circle on BHIM AppContext:

NPCI BHIM Services Limited (NBSL) has introduced UPI Circle, a new feature on the BHIM app that allows account holders to delegate UPI payment access securely to up to five trusted individuals, while retaining real-time control over transactions. This initiative aligns with India’s broader push for digital payments and financial inclusion.Objectives of UPI Circle:

• Secure Delegation: Enables the primary user to authorise secondary users—family members, dependents, or colleagues—to initiate UPI transactions.
• Real-Time Control: No transaction occurs without the primary user approving via their UPI PIN, ensuring accountability and oversight.
• Financial Transparency: All transactions initiated by secondary users are visible to the primary user.
• Enhanced Digital Inclusion: Helps senior citizens, young adults, dependents, and digitally inexperienced users manage payments securely.
• Operational Flexibility for Businesses: Small enterprises can delegate payment tasks to staff without providing full account access.

Significance:

• Digital Payments Growth: UPI Circle complements India’s rapidly expanding UPI ecosystem, which recorded 18.3 billion transactions worth ₹24.77 trillion in April 2025.
• Empowerment & Oversight: Promotes financial literacy and shared responsibility while preventing misuse of funds.
• Innovation in Payment Systems: Represents an evolution of UPI features, integrating delegation, transparency, and parental/business supervision tools in one platform.

Implementation Process:

1. Update BHIM app to version 4.0.2 or later.
2. Navigate to the ‘UPI Circle’ section and add secondary users via UPI ID or QR code.
3. Set delegation type as “Approve every payment.”
4. Secondary users can initiate payments, but all require real-time approval from the primary user via UPI PIN.

Broader Upgrades in BHIM App:

• Split Expenses: Facilitates group payments.
• Family Mode: Manages household financial sharing.
• Spend Dashboard: Provides insights on expenditure patterns.
  
  Updated - Apr 23 2025 ; 5:07 PM | Business Standard