 "Google Pay unveils UPI Circle: What is it? How does it help those without bank account?")
Tech giant Google has introduced new feature in Google Pay – the Unified Payments Interface (UPI) Circle.
Google made the announcement during the three-day Global Fintech Fest (GFF) 2024 held at the Jio World Convention Centre in Mumbai.
Google said it has introduced the feature in partnership with the National Payments Corporation of India (NPCI).
But what is the UPI Circle? How does it work?
Let’s take a closer look:
What is it?
UPI Circle is a feature that allows users to add family members and friends as secondary users.
It basically allows the secondary users to make digital payments without linking their bank accounts.
“There’s still a segment of the population that relies on cash and/or is hesitant to use UPI, due to various reasons, including limited access to banking services,” the Google Pay team was quoted as saying by The Hindu.
As per 91mobiles.com, the secondary users can make payments up to a certain amount without the authorisation from the primary user.
The feature will also be available on other UPI apps such as BHIM, PhonePe, and Amazon Pay.
How does it work?
The primary user must make sure that his or her bank details are entered correctly on the app.
It is necessary for the secondary user to have a functioning UPI account.
The primary user must also have the secondary user’s mobile number saved on their phone as the UPI will have to link both users, as per the website.
Impact Shorts
More ShortsPrimary users can also choose between assigning the secondary users full or partial delegation.
In the former, the primary users can set a maximum limit of Rs 15,000 per month which the secondary user can transfer.
Each transaction can be a maximum of Rs 5,000.
In the partial delegation, the primary user will have to approve every payment request made by the secondary user.
As per Business Standard, the partial delegation request is valid for 10 minutes.
The primary user’s invitation request to the secondary user is valid for only 30 minutes.
If the secondary user hasn’t accepted the invite, a new request will need to be made.
After the two accounts are linked, there is a 30-minute cooling off period in which no transactions are allowed.
A primary user can add up to five secondary users.
However, a secondary user can only be part of one UPI Circle.
As per The Hindu, this feature in GPay will be rolled out in India later this year.
Google Pay also introduced autopay option for UPI Lite and support for ClickPay QR on the app.
As per Mint, the former allows users to set up recurrent payments, while the latter allows users to make payments by simply scanning the QR code.
During the event, which concluded on Friday, Google Pay also launched eRupi (UPI Vouchers), which can be issued by existing UPI users, as well as government and corporate organisations.
It also rolled out Tap & Pay payments for RuPay cards, enabling RuPay cardholders to use their mobile phone for payments.
“These functionalities will bring ease, convenience, and simplicity to the way users interact with payments and finance instruments,” Google said in a blog post.
‘Optimistic UPI will grow’
Reserve Bank Governor Shaktikanta Das August 31 said he is optimistic that the Unified Payments Interface (UPI) will grow further in several countries.
Das said UPI is already present in many countries through QR codes and the linkage of fast payments systems, and discussions are underway with several other nations.
We expect this to grow further at the global level and internationalise in future, he told reporters.
Das had said that notable progress in this direction has already been made with countries like Bhutan, Nepal, Sri Lanka, Singapore, the UAE, Mauritius, Namibia, Peru, France and a few others for acceptance of RuPay cards and payments through the UPI network.
These endeavours, he said, underscore collaborative efforts for the adoption of India’s initiatives across the globe.
With inputs from agencies
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