UPI Circle – NPCI has recently launched the Delegated Payment System based UPI Circle service. Reserve Bank of India (RBI) Governor Shashikant Das has launched this new service and has offered a new solution for online payment to the users. National Payment Corporation of India (NPCI) has recently launched this service and said that this service will take India’s digital payment system further ahead.
What is UPI Circle?
This service of NPCI is a delegated payment system, in which multiple users will be able to use the same UPI account. However, this does not mean that it will not be secure. NPCI has clarified that this delegated system will be secure and easy-to-use. In its press release, NPCI said that about 6 percent of UPI users transact for someone else. After the implementation of the delegated payment system, even those users who do not have a bank account will be able to make UPI payments.
According to NPCI, in this delegated payment system, the primary UPI user can add trusted secondary users to him. Even if the secondary user does not have a bank account, he can still make UPI payments through the primary user’s bank account.
How does it work?
In the delegation payment system, the payment will be done only when the primary user authorizes the payment request made by the secondary users of his circle. For this, the primary user will have to enter the UPI PIN. Because of this, this payment system is secure. Any secondary user can accept the delegation of only one primary user, that is, a secondary user will have only one primary user. Whenever the secondary user initiates a UPI payment, its notification will go to the primary user. The payment will be processed only when the primary user authorizes the payment.
What is the spending limit?
NPCI has set a spending limit for the delegated payment system. Any delegated secondary user can spend only up to Rs 15,000 in a month. Also, they can spend a maximum of Rs 5,000 at a time. A primary UPI user can add a maximum of 5 secondary users in his UPI circle.