Google has recently introduced a new UPI Circle feature to its Google Pay app. The new feature aims to make financial transactions more convenient for the users. This feature further enables the users to delegate payment tasks to trusted family members or friends, which will help in bridging the gap for those who may not have access to a bank account or are uncomfortable with digital payments.
Here is everything you need to know about the new UPI Circle.
UPI Circle: What is it?
UPI Circle enables a primary Google Pay user to delegate payment tasks to secondary users, like friends or family. This is particularly useful for individuals who do not have any bank accounts or those who are not confident about using digital payments.
The primary user’s bank account is used for transactions in UPI Circle. On the other hand, the secondary user could make payments without needing their own linked account.
Google partnered with the National Payments Corporation of India (NPCI) to introduce this feature. This feature encourages digital payments among cash-reliant individuals.
Types of UPI Circle Delegation
UPI Circle offers 2 levels of control over payments:
- Full delegation: The primary user could set a monthly transaction limit of up to Rs 15,000, enabling the secondary user to make payments within this limit without further approval.
- Partial delegation: The primary user will have full control, needing to approve each transaction initiated by the secondary user. This will ensure the primary user stays informed and can approve or reject payments.
For Security
To add an extra layer of security, a 30-minute waiting period is needed before any transactions can be made after linking a secondary user.
Who benefits from the new UPI circle?
UPI Circle is designed for families where some members, such as elderly parents, may be uncomfortable with digital payments, or for managing payments for dependents or domestic help. It offers an easy way to provide financial assistance without compromising security.
How to Use UPI Circle
To use UPI Circle, you will have to update the Google Pay app. Follow are the steps to set it up:
Primary users:
- Ensure your bank account is linked to Google Pay.
- Add the secondary user by selecting their UPI ID from your contacts.
- Choose the delegation type (full or partial).
- Invite the secondary user to join your UPI Circle.
Secondary users:
- Accept the invitation sent by the primary user.
- Use your UPI app to initiate payments, with a transaction limit of ₹5,000 per payment and ₹15,000 monthly.
Tracking payments and user limits
- Both primary and secondary users could easily track real-time payment status and transaction history in the UPI Circle section of their profiles.
- Primary users will be able to add up to 5 secondary users, but each secondary user can only join one UPI Circle at a time.
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