BHIM Rolls Out Delegated UPI Payments With Spending Caps And Long Validity

BHIM Payments has introduced Unified Payments Interface (UPI) Circle Full Delegation, which will allow users to delegate some of their controlled payment rights to trusted contacts. The update launched by NPCI BHIM Services Limited (NBSL), a wholly-owned subsidiary of National Payments Corporation of India (NPCI), is targeted at enabling households, dependents, and small businesses that thrive on shared spending but need clear control.

A primary user can now authorise a secondary user to make UPI payments directly from their bank account. The monthly limit could be set up to Rs 15,000, and the delegation can stay active for up to five years. All transactions reflect instantly for the primary user, keeping visibility intact.

The update moves the feature beyond real-time approval workflows, said Lalitha Nataraj, the managing director and chief executive officer of NBSL. She added that it reflects the way many households and small setups function, where trust and accountability shape day-to-day spending patterns.

Feature Designed Around Everyday Shared Spending

NBSL stated that it is meant for practical situations where shared expenses abound, but individual digital access may vary. Since the user doesn't need a separate bank-linked UPI ID, this feature may be beneficial in situations where some people find digital payment formats unfamiliar or inconvenient.

It will be handy for senior citizens who want independence regarding payments for low-value purchases. Young adults budgeting day-to-day expenses, or even academic expenses, might also make use of access delegation within limits set by the parents.

For smaller businesses, the feature offers a controlled way for employees to make operational payments like fuel or toll charges. With all of the spending visible to the owner, it reduces the need for petty cash and creates a digital trail for high-frequency, low-ticket transactions.

Key Use Cases

• Senior citizens can be given controlled access to independently pay for small transactions while remaining within safe limits.

• An assigned cap can help young adults manage routine or educational spending.

• Operating expenses can be easily managed transparently by the staff in small businesses.

• Dependent individuals who are not digitally confident can have delegated access while the primary user is monitoring spending in real time.

How The Feature Works

Open the BHIM Payments App and go to the UPI Circle section from the home screen. Click on 'Invite to Circle' and enter their contact number. Further, the system will ask for a secondary user UPI ID or QR code and go through identity verification using Aadhaar or other documents available in the app. Once all those are done, and the primary user has set the limit, chosen the relationship category, and approved it with the UPI PIN, the request reaches the delegated user. Once accepted and after a short cooling period, the user can begin making payments.

The company has coupled this facility with other new features, including spend analytics, split expenses, family mode, and multi-lingual support. These features have been targeted at expanding the use of digital payments among users who increasingly use UPI for daily transactions.