Back in the day, grandparents would give us pocket money for our expenses, and our parents would carefully monitor every purchase, ensuring we spent wisely. Fast forward to today, imagine a system that empowers parents to oversee their children’s purchases with pre-set spending limits.
That’s UPI Circle for you.
Now, let’s consider another scenario. You’re an entrepreneur looking to grant your staff the flexibility to manage administrative expenses while maintaining oversight of the accounts.
With the UPI Circle feature, you can do just that.
The possibilities are endless—these are just a couple of ways UPI Circle can transform how you manage and monitor expenses effortlessly.
Let’s explore the transformative potential of UPI Circle, from its functionality and benefits to its impact on both banks and users.
Before that, what’s UPI circle in its true essence.
What is UPI Circle?
UPI Circle, introduced by NPCI, enhances digital payment accessibility by allowing primary users to add family members or friends as secondary users. The secondary users can make transactions using the primary user’s bank account, within predefined limits. This feature is designed to offer UPI access to individuals who may not have their own bank accounts or are reluctant to use digital payments, making it easier for them to engage in the digital economy.
Why the UPI Circle Initiative?
UPI Circle streamlines access to digital payments and simplifies the adoption of formal banking systems for millions of unbanked individuals. This innovation not only promotes financial literacy but also opens doors to new economic opportunities for underserved communities. UPI Circle’s impact goes far beyond convenience—it’s a catalyst for accelerating India’s financial inclusion
How does UPI Circle Work?
The UPI Circle enables a primary UPI user to delegate transaction authority to a trusted secondary user. This delegation can be customized as partial or full, based on the primary user’s preferences and requirements. It is especially beneficial for the elderly, differently abled, or those who need support in managing their finances.
Full Delegation
This mode allows the primary user to assign a monthly transaction limit of up to ₹15,000 to the secondary user. Within this limit, the secondary user can independently make payments, with a maximum cap of ₹5,000 per transaction. It enables the secondary user to transact freely within the set boundaries.
Partial Delegation
In this mode, the secondary user must seek the primary user’s approval for every payment request. Unlike full delegation, the secondary user cannot complete transactions independently, providing the primary user with tighter control over each payment.
Benefits of UPI Circle
- Enhanced Control: Primary users can set spending limits and approve transactions, ensuring better control and oversight.
- Transaction Transparency: Allows primary users to have complete visibility into transactions made by secondary users, ensuring full transparency.
- Customizable Permissions: Allows to set specific rules and parameters for secondary users, making it perfect for use cases such as parental oversight on children’s spending or managing business expenses.
- Financial Inclusion: Makes digital payments accessible to underserved populations, helping integrate unbanked individuals into the financial system.
Use Cases of UPI Circle
- For Senior Citizens: Simplifies digital payments by letting trusted family members handle transactions, easing the burden of navigating complex systems.
- For Students: Offers quick, controlled access to funds, providing peace of mind for both students and parents managing expenses.
- For Families: Facilitates collaborative management of household expenses, ensuring smooth operations and promoting financial literacy among younger members.
Just as UPI Circle simplifies the payment experience for individuals and families, businesses also require seamless, scalable, and secure solutions for their UPI programs.
This is where M2P’s UPI stack comes in.
M2P’s UPI Stack
Our cloud-native full-stack UPI platform is a fully regulatory compliant solution that empowers financial institutions of all sizes to seamlessly launch and scale UPI programs within a unified stack. We enable businesses to accelerate go-to-market efforts, reduce operational costs, and improve transaction security with our customizable stack. Our solution is built for unmatched efficiency with
- 100% light weight API coverage
- Low-code integration
- Limitless scalability
- Economical Total Cost of Ownership (TCO)
- Modular architecture
Are you ready to implement UPI circle?
Get in touch with us today.
Subscribe to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.
Follow us on LinkedIn and Twitter for insightful fintech bytes curated for curious minds like you.
0 Comments