UPI Circle launched on Bhim app: how it works and key benefits

Feature allows users to securely delegate UPI payments to trusted individuals; each transaction requires real-time approval

NPCI BHIM Services Limited (NBSL) has launched a new feature on the BHIM app that allows users to securely delegate payment access for Unified Payments Interface (UPI) to up to five “trusted individuals”, with each transaction requiring real-time approval from the account holder.

 

UPI Circle’s launch comes at a time when the digital payments service is expanding steadily. UPI in April recorded 18.3 billion transactions amounting Rs 24.77 trillion, a 13.6 per cent jump in volume and a 12.8 per cent rise in value compared to March, according to NPCI data.

 

“UPI Circle on BHIM is more than just a feature; it’s a step towards a more inclusive and connected financial ecosystem,” said Lalitha Nataraj, managing director and chief executive officer of NBSL. “By offering a secure and flexible way to delegate financial responsibilities, UPI Circle enhances the way we share and manage our money.”

 

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 authorise up to five secondary users, like 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.

 

All transactions are fully visible to the primary user, ensuring complete transparency and control.

 

Why UPI Circle matters

 

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 who may struggle with digital payments.

 

Empowering young adults and children to manage limited expenses under parental supervision.

 

Small businesses delegating staff to make operational payments without handing over full account access.  ALSO READ: Luxury goods above Rs 10 lakh will now attract 1% TCS, says I-T dept

 

Helping digitally inexperienced users, like dependents, manage finances with guidance.

 

How to Use UPI Circle on BHIM

 

1. Update or download the BHIM app (version 4.0.2 or later).

 

2. Navigate to the ‘UPI Circle’ section on the home screen or menu.

 

3. Tap ‘Add Secondary User’ and input their UPI ID or scan their QR code.

 

4. Set the delegation type as “Approve every payment.”

 

5. The secondary user receives an invite; upon acceptance, they can initiate payments.

 

6. The primary user receives a real-time approval request for every transaction and must authorize it via UPI PIN.

 

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.