UPI (Unified Payments Interface) enables transactions to be processed instantly at any time of the day or night. This 24/7 availability includes weekends, public holidays, and even during non-banking hours, a significant departure from traditional banking methods where transactions may be limited to business hours or take longer to process, especially on holidays.

This round-the-clock accessibility has transformed the way people and businesses handle financial transactions. For example:

• Convenience for Users: Customers can send or receive money whenever they want, without waiting for the next business day, which is particularly useful in emergencies or urgent payment situations.
• Business Operations: Businesses, especially e-commerce platforms and small vendors, can receive payments instantly, even during late hours or holidays. This smoothens cash flow and helps manage real-time financial needs.
• Reduced Dependency on Cash: Since UPI transactions don’t depend on bank operating hours, users are encouraged to rely less on cash, as digital payments are accessible at any time.

24/7 availability of UPI enhances the efficiency, accessibility, and flexibility of financial transactions, making it an integral part of India’s digital economy.

1. Breaking Down Traditional Banking Barriers:

• Traditional bank transfers, such as NEFT (National Electronic Funds Transfer) and RTGS (Real-Time Gross Settlement), used to operate only within specific banking hours and sometimes did not function on weekends or public holidays. UPI breaks this barrier by enabling anytime, instant transactions, which has modernized digital banking for the average consumer and business.

1. Enabling a Cashless Society:

• The 24/7 accessibility of UPI aligns well with the Indian government’s push toward a cashless economy. With no reliance on ATMs or banks’ physical locations, users are increasingly adopting digital payments over cash, even for small, everyday purchases, making it easier to reduce physical currency usage.

1. Supports Emergency Payments:

• UPI’s 24/7 functionality is especially valuable during emergencies, where users might need to transfer funds immediately, even at night or on holidays. For instance, during medical emergencies, people can quickly send money to hospitals or caregivers without the delay of traditional banking hours.

1. Enhancing Business Operations:

• For businesses, especially in sectors such as e-commerce and retail, UPI’s round-the-clock operation allows them to process orders and payments without delay. This facilitates quicker order fulfillment and enhances customer satisfaction as businesses can verify payments in real-time.
• Small businesses and local vendors benefit significantly since they can receive instant payments at any time, even after normal business hours, which helps with cash flow and operational flexibility.

1. Financial Inclusion for Rural and Remote Areas:

• People in rural areas, who may not have easy access to bank branches or ATMs, can use UPI for their financial needs whenever necessary. This has been instrumental in enhancing financial inclusion and offering digital banking access to people in remote regions who can now participate in the digital economy seamlessly.

1. Promoting Convenience and User Control:

• Users have the flexibility to make payments or send funds whenever they want, allowing them complete control over their financial activities. They can avoid the pressure of completing transactions within business hours, reducing stress and improving user satisfaction. This freedom has redefined convenience, as users can manage their finances on their schedule.

1. Encouraging Digital Literacy:

• With UPI’s round-the-clock availability, more people have adopted digital payment methods, which indirectly promotes digital literacy and familiarity with online financial services. This continuous accessibility means people, even first-time digital users, have ample opportunity to familiarize themselves with the system, leading to more extensive adoption and comfort with digital transactions.

1. Reducing Burden on Bank Staff and Infrastructure:

• Since UPI transactions are automated and processed instantly, it reduces the workload on bank staff who would otherwise have to manage more transactions manually during working hours. Additionally, it reduces dependency on physical banking infrastructure, as UPI transactions occur entirely within the digital environment.

1. Global Competitive Edge:

• India’s 24/7 UPI payment system gives it an edge globally by setting a precedent for efficient and accessible digital payments. This innovation has not only revolutionized the domestic economy but has also drawn attention internationally as an effective model for real-time, always-on financial systems.

UPI’s 24/7 transaction capability has proven to be a critical asset, supporting economic growth, reducing dependency on cash, and providing users with unparalleled convenience and accessibility. This transformative feature continues to drive financial inclusion and economic resilience across the country.

In September 2024, the National Payments Corporation of India (NPCI) introduced the UPI Circle feature, allowing users to add a secondary user to their bank account for making UPI payments. Now available to all users across India, UPI Circle offers flexibility in managing family or friends as authorized secondary users for UPI transactions. Here’s a step-by-step guide to setting up and using UPI Circle.

Setting Up UPI Circle in the BHIM App

Currently, UPI Circle is available only on the BHIM app, with plans to roll it out to Google Pay and other UPI-enabled apps soon. Both the primary account holder and secondary user need the BHIM app installed on their devices to use this feature.

Steps for Primary Account Holder:

1. Find UPI Circle: Open the BHIM app and look for the “UPI Circle” option.
2. Add Secondary User:
   • Select the Add Family or Friends button.
   • Enter the secondary user’s UPI address (or scan their QR code) and phone number for verification. The UPI address can be found in the secondary user’s BHIM app.
3. Choose Delegation Type:
   • Partial Delegation: The primary account holder manually approves each payment request from the secondary user.
   • Full Delegation: The secondary user can make payments up to Rs 15,000 per month without approval. You can adjust this limit if needed.
4. Set Up Payment Limits:
   • If using Full Delegation, enter the monthly limit for the secondary user, up to Rs 15,000.
   • Set an end date for the delegation duration.
5. Choose Bank Account:
   • Select the bank account for payments and tap Proceed to send an invitation to the secondary user.

Steps for Secondary User:

1. Accept Invitation: The secondary user will receive a notification to join the UPI Circle.
2. Review and Accept Terms: Check the Terms and Conditions and tap Accept to activate UPI Circle.

Making Payments with UPI Circle

Once UPI Circle is set up, the secondary user can make payments with ease:

1. Initiate Payment:
   • Scan a UPI QR code or select a contact in the BHIM app.
   • Choose the primary account holder’s bank account to proceed.
2. Complete Transaction:
   • If the secondary user has Full Delegation, the transaction completes instantly.
   • If under Partial Delegation, the primary account holder must manually approve the payment from their BHIM app.
3. Receiving Payments with UPI Circle
   • Currently, UPI Circle only allows secondary users to send money or make payments. If a secondary user needs to receive a payment, they can share the UPI address or QR code of the primary account holder.

Frequently Asked Questions (FAQs) About UPI Circle

• 1. Does the secondary user need a bank account?
• No, a bank account isn’t required for the secondary user. The primary account holder’s account will handle payments.
• 2. Can secondary users be under 18 years old?
• Yes, secondary users can be under 18, making this a great option for parents to add children for controlled UPI payments.
• 3. What happens when the Rs 15,000 limit is reached in Full Delegation?
• Once the limit is reached, no further payments can be made by the secondary user. The primary account holder can remove and re-add the secondary user to reset the limit at the start of a new month.
• 4. Is UPI Circle available on Google Pay or PhonePe?
• Currently, UPI Circle is only available on the BHIM app. Testing is underway for Google Pay, with future plans to expand.
• 5. Which banks support UPI Circle?
• All banks that support UPI payments are compatible with UPI Circle.
• 6. Is UPI Circle safe?
• Yes, UPI Circle is regulated by NPCI and RBI, ensuring the same level of security as standard UPI.
• 7. Can I switch between Full and Partial Delegation?
• To change between Full and Partial Delegation, you need to remove and re-add the secondary user as there’s no option to switch modes directly within the app.

With UPI Circle, managing transactions among trusted contacts becomes more convenient and controlled, providing an efficient way to handle shared or delegated payments securely.