With the recent release of UPI Circle by NPCI, UPI users can now grant trustworthy others access to their accounts so they can conduct transactions, even if they do not have UPI accounts of their own.
By giving them access to UPI transactions, the innovation aims to empower secondary users—especially those who might be financially dependent.
UPI Allows Giving Access To Others To Conduct Transactions
Google Pay has declared that it will be integrating UPI Circle into its Indian payment app.
Primary users (those who have a UPI account connected to their bank account) can provide permission for secondary users (who might or might not have a UPI account) to carry out transactions using UPI Circle.
To safeguard transactions, the function offers several security tiers and levels of intervention.
Through the UPI app, primary users can add secondary users by inputting their UPI ID or scanning a QR code. At this time, phone numbers cannot be manually entered.
Secondary users can register to use the service and set up their UPI accounts once they are added. Passcodes or biometric authentication must be used to secure transactions.
For secondary users, there are two kinds of delegation: partial and full. While complete delegation permits secondary users to make autonomous transactions up to a monthly cap, partial delegation necessitates the primary user’s consent for every transaction.
For secondary users, the NPCI has imposed a maximum monthly delegation limit of Rs. 15,000 and a single transaction ceiling of Rs. 5,000. The transaction limit is set at Rs. 5,000 for the first 24 hours.
Primary Users Can Set Transaction Limits
Through the app, primary users can set various transaction limitations (under Rs. 15,000) for each secondary user and keep an eye on what the latter is up to.
Up to five secondary users may be authorized by a primary user, but only one primary user may be connected to more than one secondary user.
Access to the secondary user can be withdrawn at any moment by the primary user.
