BHIM UPI Circle Simplifies Shared Spending With Built-In Controls

The BHIM payments app has added a new feature of Unified Payments Interface (UPI) Circle, through which users can share controlled access of their UPI-linked bank accounts with trusted people. The feature is directed towards making digital payments more practical for households and small setups where multiple people may need to make transactions from a single account.

UPI Circle allows the primary user to authorise up to five secondary users. These users can make payments from the primary user's bank account within pre-defined limits. This is designed to reduce the need for informal practices, such as sharing UPI personal identification numbers (PINs) or granting full device access.

What UPI Circle Allows Users To Do

Under the UPI Circle, a primary user can set a limit of up to Rs 15,000 for monthly transactions for each of the authorised users. The duration of access can also be defined, from one month to five years. This allows users to customise access depending on their individual needs.

Secondary users are able to create their own UPI IDs in the circle. This enables them to conduct transactions on their own with no need for constant approvals for each transaction made, provided they don't exceed the limits set for them.

How The Feature Works

Once a secondary user is added, they can make payments directly from the primary user's account. All transactions are still visible to the primary user, keeping them transparent. The primary user maintains full control and can change limits, review transaction history, or revoke access at any time.

This structure makes it possible to have a clear record of all transactions that have been made under the setup that is shared. It also separates individual usage by individual UPI IDs, although the funds are drawn from the same account.

Concentrate On Security And Control

The feature is placed as a safer alternative to sharing sensitive information. By providing controlled delegation, UPI Circle aims to mitigate the risks of sharing UPI PINs, passwords, or mobile devices.

Primary users have full control over all activities and can step in when necessary. The option to delink users or to modify permissions creates another level of control, particularly in cases where access requirements may vary over time.

Use Cases For Everyday Payments

UPI Circle is hoped to come in handy in a number of everyday situations. Families can use it to manage shared expenses, such as providing for elderly members, or limited access for spending to children and students.

Small business owners may find the feature relevant as well for regular operational payments, such as fuel or purchases made in the locality, while keeping track of expenses. It can also be useful for individuals to support dependents who may not be fully comfortable using digital payment apps independently.