If you don’t have a bank account but use Unified Payments Interface (UPI), you can still make payments easily.
The Reserve Bank of India (RBI) has introduced a new UPI Circle feature to help users manage payments without needing a bank account.
This feature, launched by the National Payments Corporation of India (NPCI), provides convenience for those who prefer not to use cash.
What is the UPI Circle Feature?
The UPI Circle feature is designed for people who make cash payments for daily needs and don’t have their own bank accounts.
It allows UPI users to choose a trusted secondary user to handle their digital payments.
This means that if a family member, like an elderly person or child, doesn’t have a bank account,
the primary user can make payments on their behalf. The UPI Circle feature supports both full and partial payments.
How Does the UPI Circle Feature Work?
There are two types of users in the UPI Circle system: primary and secondary. Primary users have their own UPI accounts and can add secondary users to their circle.
They can set payment limits for secondary users, deciding whether they can make full payments or only partial ones.
The feature offers two types of delegation
Full Delegation: Secondary users can make payments up to a set limit without needing approval for each transaction.
Partial Delegation: Secondary users can send payment requests, but these need to be approved by the primary account holder before the transaction is completed.
