New Feature On Bhim Allows Family Members To Make Payments On Your Behalf

In a move aimed at enhancing digital payment accessibility, the National Payments Corp. has launched the "UPI Circle" feature on the BHIM app.

This new feature allows primary users to add family members and friends as secondary users, enabling them to make transactions using the primary user's bank account, all within pre-set limits.

The UPI Circle is designed to extend the convenience of UPI transactions to those who may not have their own bank accounts or are hesitant about using digital payments.

Primary users can now delegate payment authorisation to secondary users, such as family members or employees, who can then perform transactions directly from the primary user's account. 

This feature is expected to be particularly beneficial for parents providing allowances to children, senior citizens who are cautious about conducting digital transactions, and business owners who need to manage petty cash for their staff.

Once added, primary users will have the option to set spending limits or require approval for each transaction. The "Spend With Limits" option allows secondary users to make payments within defined limits without needing further approval, while the "Approve Every Payment" option offers greater control by requiring the primary user's approval for each transaction.

"About 6% of UPI users make a large number of transactions, mainly because they also make transactions on behalf of others. This feature will allow the primary user to have the same control while offering more convenience while making delegated payments," a statement by the NPCI said. 

Here's How To Set Up UPI Circle 

1. Go to UPI Circle Menu: Tap "Add Family or Friends."

2. Enter a secondary UPI ID, scan their UPI QR code, or search your phone contacts to add.

3. Set Permissions: Choose between "Spend With Limits" or "Approve Every Payment."

4. Secondary user will receive a notification to accept the request. 

5. Once accepted, secondary users can start making payments using the primary user's UPI account.