UPI Circle Launched on BHIM App: How It Works and Key Benefits

By | April 23, 2025

The Unified Payments Interface (UPI) has revolutionized how people make digital payments in India, offering a fast, secure, and efficient method for financial transactions. Over the years, UPI has become a major player in the financial ecosystem, supporting instant money transfers across various platforms and banks. Now, the BHIM app has introduced a new feature that enhances the security and convenience of UPI transactions. Known as UPI Circle, this feature lets users securely delegate UPI payments to trusted individuals, adding more flexibility and control to their financial interactions.

In this article, we will explore how UPI Circle works, its key features, and the various benefits it offers to users.

What is UPI Circle?

UPI Circle is a new feature on the BHIM app that allows users to delegate UPI transactions to trusted individuals. With this feature, users can create a circle of family members, friends, or colleagues authorized to approve or manage their UPI payments. The system requires real-time approval for each payment within the circle, ensuring that users can monitor and control their financial activities more securely.

The introduction of UPI Circle brings a more controlled and transparent approach to UPI transactions. When a user initiates a payment, the designated individuals in the circle receive notifications and can approve or reject the transaction. This ensures no unauthorized or mistaken payments take place, offering users peace of mind.

How Does UPI Circle Work?

Setting up UPI Circle on the BHIM app is simple. Here’s how it works:

  1. Download and Update the BHIM App: To begin using UPI Circle, users must have the latest version of the BHIM app installed. If you haven’t updated the app recently, visit your app store to download the latest version.
  2. Create Your Circle: After updating the app, users can create their UPI Circle by inviting trusted individuals to join. These individuals may be family members, friends, or colleagues, all of whom will have the authority to approve or reject UPI payments.
  3. Assign Roles: Within the circle, users can assign specific roles to each individual. For example, one person might have the authority to approve bill payments, while another manages smaller, everyday expenses. This role-based system helps ensure that the right people oversee the right types of transactions.
  4. Initiate Payments: After setting up the circle, users can initiate UPI payments as usual. However, whenever a transaction occurs, the designated circle members will receive a notification and must approve the transaction before it is completed.
  5. Real-Time Approvals: Circle members can approve or reject payments in real time. If they approve the transaction, it proceeds as expected. If they reject it, the payment gets canceled. This real-time process allows trusted individuals to oversee and validate payments before completion.
  6. Security and Transparency: Every transaction made within the circle is visible to all members, providing transparency. Additionally, requiring approval from trusted circle members increases the security of each transaction.

Key Benefits of UPI Circle

UPI Circle brings several benefits to users, particularly in terms of security, convenience, and control over financial transactions. Let’s look at the key benefits:

1. Enhanced Security

Security remains a top concern for digital payments. While UPI has already proven itself as a secure system, UPI Circle adds an extra layer of protection by requiring real-time approvals from trusted individuals. This reduces the likelihood of unauthorized or fraudulent transactions. With a second pair of eyes overseeing payments, users can feel more confident about the security of their funds.

2. Increased Control and Flexibility

UPI Circle provides users with greater control over their financial transactions. By allowing individuals to delegate payment authority to others, users can manage their payments more effectively. For example, parents might grant their children limited access to make small purchases while maintaining control over larger transactions. Similarly, businesses can designate employees to approve payments but ensure that the final decision remains in the hands of authorized personnel.

3. Real-Time Notifications and Approvals

One of the key advantages of UPI Circle is the real-time approval process. Users receive instant notifications when someone initiates a payment, allowing them to approve or reject the transaction immediately. This feature ensures that payments are handled quickly and securely, without delays.

4. Transparency and Trust

UPI Circle fosters trust and transparency among its members. All transactions within the circle are visible to every member, eliminating any room for hidden actions or misunderstandings. This transparency builds trust and ensures that all financial activities are accountable.

5. Ideal for Family and Group Payments

UPI Circle benefits families or groups that regularly share expenses, such as bill payments, rent, or joint purchases. Instead of relying on one person to handle all the payments, each member of the circle can manage a specific aspect of the finances, ensuring a smoother and more organized process.

6. Helps Prevent Fraud and Mistakes

Mistakes in digital payments can sometimes lead to costly consequences, such as sending money to the wrong account or overpaying for a service. With UPI Circle, trusted individuals must approve payments, reducing the risk of errors or fraud. If someone attempts to make an unauthorized or incorrect transaction, the other members in the circle can spot it and prevent the issue.

7. Simplifies Group Financial Management

Managing finances within a family or group can be complicated. UPI Circle simplifies this process by allowing users to delegate payment responsibilities while maintaining oversight. Whether it’s dividing costs for a family vacation, handling business payments, or organizing shared expenses among friends, UPI Circle offers an efficient and secure solution.

Conclusion

UPI Circle marks a significant advancement in the world of digital payments. By allowing users to delegate payment authority to trusted individuals, it provides enhanced security, transparency, and control. Whether you’re looking to safeguard your family’s finances, manage business transactions, or simply ensure that your payments are made securely, UPI Circle offers a flexible solution. As digital payments continue to evolve, innovations like UPI Circle will play a vital role in making online transactions safer and more reliable.

With the growth of UPI adoption in India, features like UPI Circle demonstrate how digital payment systems can be both secure and user-friendly, empowering users to manage their finances with confidence.