UPI Circle on Bhim App: A Secure and Flexible Way to Delegate Financial Responsibilities

NPCI BHIM Services Limited has launched a new feature on the BHIM app called UPI Circle, which allows users to securely delegate UPI payments to up to five trusted individuals. Each transaction requires real-time approval from the account holder, promoting financial inclusion and flexibility while maintaining security. The feature is designed to support senior citizens, empower young adults and children, and enable small businesses to delegate staff for operational payments.

NPCI BHIM Services Limited (NBSL) has introduced a new feature on the BHIM app called UPI Circle. This feature allows users to securely delegate UPI payments to up to five trusted individuals, enhancing financial inclusion and flexibility while maintaining security [1].

What is UPI Circle?

UPI Circle is a partial delegation tool available on the newly updated BHIM app (v4.0.2). It enables a primary user to authorize up to five secondary users—such as family members, work colleagues, or dependents—to initiate UPI transactions on their behalf. No money moves until the primary user approves each transaction in real-time via their UPI PIN [1].

Key Benefits of UPI Circle

The feature is designed to promote financial inclusion and flexibility while maintaining security. Some key use cases highlighted by NBSL include:

- Support for Senior Citizens: Senior citizens who may struggle with digital payments can now have trusted family members manage their transactions.
- Empowering Young Adults and Children: Parents can empower their children to manage limited expenses under their supervision.
- Small Businesses: Business owners can delegate staff to make operational payments without handing over full account access.
- Digitally Inexperienced Users: Dependents can manage finances with guidance from trusted individuals.

How to Use UPI Circle on BHIM

1. Update or Download the BHIM App: Ensure you have the latest version (4.0.2 or later).
2. Navigate to the 'UPI Circle' Section: Go to the 'UPI Circle' section on the home screen or menu.
3. Add Secondary User: Tap 'Add Secondary User' and input their UPI ID or scan their QR code.
4. Set Delegation Type: Choose “Approve every payment.”
5. Invite and Accept: The secondary user receives an invite which they must accept to initiate payments.
6. Real-Time Approval: The primary user receives a real-time approval request for every transaction and must authorize it via UPI PIN.

Conclusion

UPI Circle is part of a broader upgrade to the BHIM app, which now also includes features like Split Expenses, Family Mode, and a Spend Dashboard. This new feature not only makes digital payments more accessible and secure but also provides a flexible way to manage financial responsibilities [1].

References

[1] https://hindi.financialexpress.com/investment-saving-news/bhim-app-upi-circle-feature-nbsl-partial-delegation-secondary-user-benefits-explained-8993133
[2] https://www.business-standard.com/finance/personal-finance/bhim-rolls-out-upi-circle-for-secure-delegated-payments-how-it-works-125042300902_1.html