NPCI Launched “UPI Circle” for Secure Delegated Payments with Trusted Users

Current Context: The National Payments Corporation of India (NPCI) has introduced a new feature called UPI Circle. This feature allows primary UPI account holders to securely delegate payment responsibilities to trusted secondary users.

• Here’s a quick overview of how it works:
• Primary User: The account holder who initiates the Circle and controls the delegation.
• Secondary User: A trusted individual granted partial or full access to the account for making payments.
• Types of Delegation:
• Full Delegation: The secondary user can complete transactions within predefined limits without further approval.
• Partial Delegation: The secondary user can initiate transactions, but the primary user must authenticate and finalize the payment using their UPI PIN.
• This feature is designed to enhance convenience and security, particularly for managing payments for dependents, such as parents paying for their children or elderly citizens delegating payments to family members.

Question:

1 What is the primary purpose of the UPI Circle feature introduced by National Payments Corporation of India (NPCI)?

• A) To provide a credit facility to UPI users
• B) To delegate payment responsibilities securely to trusted individuals
• C) To increase transaction limits for UPI users
• D) To allow users to link multiple bank accounts to a single UPI ID

Answer: B) The UPI Circle feature is designed to allow primary UPI account holders to delegate payment responsibilities to trusted secondary users while maintaining security and control.