The National Payments Corporation of India (NPCI) has introduced “UPI Circle,” a new feature allowing primary UPI users to delegate payment tasks to trusted secondary users. This initiative, endorsed in an August 2023 steering committee meeting, aims to enhance the digital payment experience for users who currently rely on cash. With UPI Circle, primary users can fully or partially delegate payment tasks. Full delegation permits secondary users to complete transactions within set limits, while partial delegation allows secondary users to initiate transactions that the primary user must finalize. UPI apps must ensure separate user journeys for primary and secondary users, secure access through biometrics or passcodes, and maintain transaction limits, including a maximum monthly limit of ₹25,000 per delegation. Primary users can manage up to five secondary users and must have visibility over transactions performed by them. The new feature also includes transaction reconciliation processes and adheres to RBI guidelines for dispute resolution and transaction failures. Members must implement these changes by adhering to the outlined guidelines and referring to the UPI Circle Procedural Guidelines for detailed instructions.
NATIONAL PAYMENTS CORPORATION OF INDIA
NPCI/UPI/OC No.201/2024-25 Dated: 13th August 2024
To,
All Members – Unified Payments Interface (UPI)
Dear Sir/Madam,
Subject: Introduction of “UPI Circle” — Delegated Payments for secondary users
UPI has emerged as a preferred mode of payment for users. UPI has created a seamless digital experience to enable users to transact via their mobile devices. There are users who are still dependent on cash for their daily payment needs because they do not manage their own money through their own account. With the objective of addressing these unmet needs, introduce “UPI Circle” is introduced, wherein UPI users can delegate to their trusted secondary users for making payments. UPI Steering Committee meeting held on 3 rtl August 2023 had endorsed the introduction of “UPI Circle – Delegate Payments”.
UPI Circle is a feature where a UPI user acts as a primary to link with their trusted secondary users on their UPI App for either partial or full delegation. Primary user can authorize a trusted secondary user for performing transactions within the security protocols/ limits.
Full Delegation — Primary user authorizes a secondary user to initiate and complete UPI transactions as per defined spend limits
Partial Delegation — Primary user authorizes initiation of payment requests from secondary users, Primary user shall complete UPI transaction with UPI PIN
Members are required to ensure the below guidelines are followed:
1. UPI apps and PSP to offer independent user journey for Primary and secondary users. User shall have their own choice of UPI app
2. UPI Apps shall ensure App passcode/ biometrics (finger/face), etc. mandatory for all secondary users
3. For linking, Primary user shall scan QR/enter UPI Id followed by selection of contact number from the contact list. In the later phase, Primary user shall be able to link Secondary user in lieu of QR code scan by selection of contact number from the contact list only, details to notified.
a. Manual entry of mobile number shall be restricted
4. A primary user can delegate to up to 5 secondary users and a secondary user can accept delegation from only one primary user
5. Members shall ensure that the primary authorize the secondary user on either full or partial delegation
6. Members shall ensure limits control to be available for the primary to set usage controls over their secondary users
7. For full delegation, Members shall ensure a maximum monthly limit of 215,000/- per delegation and maximum per transaction limit of 25000
8. Existing UPI limits shall be applicable in case of partial delegation
9. Members shall ensure that during the cooling period — first 24 hours, a daily transaction limit of 25000 shall be prescribed after successful linking of primary and their secondary user for both full and partial delegation
10. Members shall ensure that the Primary user have visibility of transactions performed by secondary users on their UPI App and bank account statement
11. Members shall adhere to RBI guidelines on “Harmonization of Turn Around Time (TAT) and customer compensation for failed transactions using authorised Payment Systems” dated September 20, 2019, as amended from time to time
12. Online Dispute Resolution (ODR) functionality shall be available for UPI transactions
13. Reconciliation process shall be as per the existing UPI guidelines. A new purpose code in the existing UPI raw file and a new line item in the Net settlement report shall be introduced to identify the UPI circle transaction and settlement, respectively. Additional raw file shall be provided for UPI Circle payments with secondary user details, shared to primary PSP, secondary PSP and remitter bank”
Members are advised to refer to UPI Circle Procedural Guidelines for detailed information.
Yours Sincerely,
SD/-
Kunal Kalawatia
Chief of Products
