UPI Circle: Make UPI Payments Without a Bank Account – Here's How It Works

New Delhi: In a major step towards expanding digital payment access, the National Payments Corporation of India (NPCI) has launched a new service called UPI Circle, based on the Delegated Payment System. The initiative was officially introduced by RBI Governor Shaktikanta Das, aiming to enable more users — even those without bank accounts — to participate in the UPI ecosystem.

🔹 What is UPI Circle?

The UPI Circle allows a primary UPI user to authorize payments on behalf of trusted secondary users, even if those users don’t have a bank account. NPCI explained that nearly 6% of UPI users currently transact for others. With this system, such users can now do it securely and systematically.

🔹 How Does It Work?

• The primary UPI user creates a "Circle" and adds up to 5 trusted secondary users.

• These secondary users can initiate UPI payments, but the transaction will only be processed after the primary user approves it by entering their UPI PIN.

• A secondary user can only be linked to one primary user at a time.

🔹 Spending Limits

• A monthly limit of ₹15,000 has been set for each secondary user.

• Each individual transaction is capped at ₹5,000.

This system adds a layer of security while offering convenience for families, elders, or those without access to formal banking. It’s expected to push India’s digital payments landscape even further.