UPI Circle explained: What it is and how to use it on Google Pay and PhonePe apps

Here’s how it works - there’s a primary user, usually the actual bank account holder, and a secondary user, who is permitted to make UPI payments using that same account.

For example, if you’re the primary user, you can set a transaction limit for the secondary user and revoke their access at any time. This feature is intended for trusted circles, such as family members, spouses, or close friends.

Why is the UPI Circle important?

• Flexible control: As a primary user, you can choose how much access to give, either by setting a spending limit or requiring approval for every transaction.
• Helps manage shared expenses: The UPI Circle makes it easier to manage household spending, daily allowances, or joint payments with someone you trust.
• Supports financial independence: It enables children, elderly individuals, or dependent family members to make UPI payments without requiring their own bank account.
• Reduces cash dependency: If you are someone who usually relies on cash, you can now make digital payments securely using someone else’s account.
• Secure and app-friendly: Apps like BHIM, GPay and PhonePe aim to make the UPI circle payment process simple to set up and safe to use.

Setting up a UPI circle

• Open your BHIM UPI app: Tap on the ‘UPI Circle’ option from the main screen.
• Add a family member or friend: Click on ‘Invite secondary contact’ on PhonePe or ‘Add people to your UPI Circle’ option on GPay. You can scan their QR code or manually enter their UPI ID.
• Enter UPI ID and phone number: If you use the UPI ID option, type in the UPI ID, then add the phone number saved in your contacts.
• Choose access type: You’ll have two options - Spend with Limits or Approve Every Payment. With the latter, you approve each transaction before it is processed.
• Set delegation preferences: You can opt for full or partial delegation, along with transaction limits and payment approvals.
• Confirm and activate: Finalise the setup by entering your UPI PIN. The secondary user will now be a part of your UPI Circle.

Features of the UPI circle

The UPI Circle introduces shared access to UPI payments with built-in controls. It operates through two access modes - full and partial delegation - allowing you to determine the level of authority granted to the secondary user.

Full delegation

The secondary user can make payments directly using the shared UPI ID, without needing approval for each transaction. You, the primary user, can set up a limit of up to ₹15,000 per month and ₹5,000 per transaction. This is suitable when the user being added is trusted and needs more independence in handling payments.

Partial delegation

In this case, the secondary user can initiate a transaction, but it will only be successful after you (the primary user) confirm it with your UPI PIN. This option is better for tighter control and closer monitoring.

Both options work well for different needs, providing you with more flexibility for UPI Circle payments while keeping your accounts safe and organised.

What are the NPCI guidelines for users?

• Both the primary and secondary users will use their own UPI apps independently. Their app settings, preferences, and controls will remain separate from one another.
• All secondary users must use an app passcode or biometric authentication (like fingerprint or face unlock) to complete any UPI Circle payment.
• As a primary user, you can add a secondary user either by scanning a QR code or entering their UPI ID. Manual phone number entry may be restricted to reduce misuse.
• The primary user must clearly choose between full or partial delegation for each secondary user.
• UPI apps will include online dispute resolution for transactions.
• You must also follow the Reserve Bank of India’s (RBI) turnaround time and compensation guidelines for transaction-related queries.

Frequently asked questions (FAQs)

Is the UPI circle available on PhonePe?

Yes, UPI Circle was launched on PhonePe on April 15, 2025. The platform has over 60 crore (600 million) registered users and serves more than four crore (40+ million) merchants across India.

What is the transaction limit for secondary users?

You can set a monthly cap of ₹15,000 and a per-transaction limit of ₹5,000 for each secondary user added to their UPI Circle.

How many secondary users can I add to the UPI circle?

Up to five secondary users can be added to your UPI Circle. Each one can only be linked to one primary user at a time to maintain simplicity and security.