PhonePe unveils UPI circle feature to broaden UPI access

PhonePe has introduced its latest innovation ,the UPI Circle. UPI (Unified Payments Interface) is the digital payment system that facilitates real-time online transactions directly from bank accounts through platforms such as PhonePe, Google Pay, and others. Traditionally, a UPI ID must be linked to a bank account in order to carry out transactions. However, with the launch of the UPI Circle, that requirement is changing.

Currently, millions of individuals in India lack access to bank accounts, limiting their access to digital payments via UPI. PhonePe’s UPI Circle aims to address this gap. According to the company, users can create a 'circle' by adding friends, family members, or anyone they choose. Each member of the circle will be assigned a UPI ID, which will be linked to the primary user’s bank account.

There are two ways in which this feature can be used. Firstly, the primary user can set a monthly spending limit of up to Rs15,000 for each UPI ID, with a per-transaction cap of Rs 5,000. Alternatively, the primary user can enable an approval mechanism, whereby every transaction made by circle members requires the primary user’s explicit authorisation before it can be processed.

This new functionality is expected to enhance digital financial inclusion, providing a pathway for more people to access cashless payments. It marks a significant step in India’s ongoing journey towards becoming a fully digital economy. UPI continues to operate seamlessly, both within India and internationally.