Latest news with #LalithaNataraj
Mint
03-05-2025
- Business
- Mint
Mint Explainer: UPI Circle's vast potential beyond family and friends
The newly introduced UPI Circle feature expands the reach of UPI to those without a bank account, such as minors, allowing inter-connected payments within trusted groups. The National Payments Corporation of India ( NPCI ) rolled out UPI Circle on its BHIM app a few months ago and opened it up for private payments platforms such as PhonePe and Google Pay last month. Mint gives a lowdown on UPI Circle and what it means for users. This new feature allows users to create a 'circle' on a UPI platform and authorise payments on behalf of family, friends or other people. It also enables such people in the primary user's 'circle' to generate their own UPI ID even without a linked bank account. A primary UPI user can add up to five dependent users to their 'circle', authorising them to transact from the primary user's UPI account within specified limits. The primary user will have real-time oversight of these transactions. 'UPI Circle enhances the way we share and manage our money and supports a more interconnected society," said Lalitha Nataraj, managing director and chief executive officer, NPCI BHIM Services Ltd, adding that the feature makes digital payments more useful, accessible and inclusive. A UPI Circle transaction mainly involves three parties. One is the primary user or UPI account holder who delegates the UPI authentication for another user to make payments. The secondary user is a person added to the primary user's UPI Circle so they can make UPI payments through the primary user's UPI-linked bank account. The third party is the recipient individual or merchant that initiates a payment with the secondary user and receives the payment from the account of the primary user. Cash is still predominantly used for payments in India, especially for small value transactions. While UPI has enhanced the usability of and access to digital payments, it requires a user to link a bank account with their UPI ID to make transactions. UPI Circle addresses users who are still dependent on cash for their daily payment needs as they may not be managing money through their own bank account. According to NPCI, around 6% of UPI users make a large number of transactions because they also make transactions on behalf of other users. Also read | How India pays online: UPI leads with 65% share, EMIs make up 20%—in charts UPI Circle allows a primary user to authorize payments for secondary users from anywhere, while retaining control over the transactions. A primary user can choose 'full delegation' to allow secondary users to make payments themselves within a specified limit, or choose the 'partial delegation' option to authorise every UPI transaction initiated by a secondary user in real time. It offers a simplified use case for shared expenses and allows users to create 'payment circles', which streamlines day-to-day financial transactions. Currently, only partial delegation has been launched under UPI Circle whereas full delegation is in the works. Without the need for an individual bank account, UPI Circle is seen opening up secure online payment solutions for those with limited access to digital financial services. It is seen extending the ease and convenience of digital payments to those who are underbanked and new to the ecosystem by enabling a secondary user to make transactions from a primary user's account with minimum intervention while ensuring risk mitigation. The feature allows a primary user to review payment requests, track the expenses of a secondary user, get secure access to detailed payment records within each circle, and unlink access from their UPI Circle. Enhanced security protocols, seamless integration with UPI platforms, and clearly defined responsibilities and permissions for primary and secondary users are meant to ensure that transactions are secure and reliable. Also read | Get set for UPI access to one's provident fund Banking technology company Zeta, in a post, said UPI Circle addresses a major gap in digital payments by providing the ability to delegate transactions securely and seamlessly—something that was only possible through cash till now. Use cases of the new feature could include a parent providing expenses to their minor kids, authorising payments on behalf of older parents or senior family members who may be wary of digital payments, or individuals who may want to delegate household chores and expenses. It can also be used by business owners, especially small business owners, to delegate payments to staff, or for corporate expenses such as for fuel, tolls, or vendor payments. UPI Circle opens avenues for financial platforms to increase volumes by capturing transactions that would otherwise be cash-based. It could also drive innovation as payments platforms look to develop new products and services tailored to delegated payment scenarios. Also read | What is UPI Meta? NPCI may plan new feature to streamline online payments
Mint
02-05-2025
- Business
- Mint
BHIM app update: A deep dive into recent features such as family mode, split expenses, spend analytics
The Bharat Interface for Money (BHIM) app, developed by the National Payments Corporation of India (NPCI), introduced a series of features such as split expenses, family mode, and spend analytics about a month ago, aimed at helping users manage their daily financial tasks more smartly. In addition, BHIM's UPI Circle feature continues to expand its use-cases for secure delegated payments. At the core of the app's functioning is the Unified Payments Interface (UPI), a platform that facilitates money transfers between bank accounts. Here's a deeper look into the new BHIM features, how to use them and where users need to be cautious. The split expenses feature is a practical tool for friends, roommates or colleagues who often share payments. This feature is already live on some other UPI apps. For a restaurant bill of ₹ 4,000 to be shared by four friends, instead of each one paying ₹ 1,000 separately, one person can pay the amount. The payer can then choose the Split Expenses option in the BHIM app, add the friends' UPI IDs, and the app will automatically send them a request for ₹ 1,000 each. Once they accept the request, the amount gets credited directly to the payer's bank account. Only transactions made via BHIM UPI can be split, and those sharing the expense must be BHIM users or have UPI IDs. The feature works only for one-time splits – recurring shared expenses such as monthly rent must be done manually every time. Family mode enables financial tasks to be shared among members. If the primary user is travelling overseas, the payment of electricity bills, DTH recharges, and Fastag top-ups can be assigned to the spouse or adult children using BHIM's Family Mode. The family members will get notifications when the bill is due, and the payments can be made from their bank accounts using BHIM. 'Family mode is designed to create a shared space within the app, allowing the primary user to assign specific tasks or payments to family members," explained Lalitha Nataraj, MD and CEO of NPCI BHIM Services Ltd. To use this feature, the primary member and the family members must have accounts on BHIM and their bank accounts linked. The family members are invited in the Family Mode section of the app. Once they accept the invite, bill payments or payment tasks can be assigned to them. Bills can only be assigned after the initial biller is registered and a payment is created. Assigned members will then receive timely reminders, ensuring that important family expenses are managed. With spend analytics, BHIM users can get a clear picture of their spending habits. The app can display a categorised summary of expenses such as groceries, utilities and shopping at the end of the month. This helps to identify areas where a user might be overspending. 'There have been many instances where people come to us and say that because of UPI payments, they no longer keep track of their expenses," Nataraj pointed out. 'The spend analytics feature solves this problem by categorising your payments and providing insights into where your money is going." This feature does not track card payments, cash spends, or payments made via other UPI apps such as PhonePe and Google Pay. Users cannot create custom categories. Transactions completed through the BHIM app will appear in the spend analytics report. In April, BHIM introduced the UPI Circle feature, which allows individuals to perform UPI transactions on behalf of someone else. This is especially useful for elderly parents who are the primary users of BHIM but not comfortable handling mobile apps. They can add trusted individuals as their secondary users and give them partial delegation to carry out transactions within certain limits and without needing to ask for real-time approvals every time. For example, parents can delegate utility bill payments to their daughter. She can initiate and complete these transactions directly from the BHIM app without needing them to approve each payment separately. However, the overall control remains with the parents, who can set transaction limits, monitor all payments in real time, and revoke access any time. This makes it extremely convenient for families where elderly parents want help managing payments but also want to retain oversight and security. Both the primary and secondary users must be registered BHIM users, and delegation settings, such as daily transaction limits, must be configured when setting up UPI Circle. Partial delegation allows secondary users to make payments independently within agreed boundaries. 'UPI Circle on BHIM is more than just a feature – it's a step towards a more inclusive and connected financial ecosystem. By offering a secure and flexible way to delegate financial responsibilities, UPI Circle enhances the way we share and manage our money," Nataraj said. BHIM is evolving from a simple UPI payments app to a complete digital money management tool – whether it's tracking your personal budget, helping your family manage bills, or securely assisting elderly parents with digital payments. The BHIM's updates reflect an understanding of the needs of modern users. However, users must follow the required conditions and remain aware of the limitations to get the best experience. As India continues its journey towards a cashless economy, innovations like these position BHIM as a key pillar of the country's digital future.
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Business Standard
23-04-2025
- Business
- Business Standard
BHIM app rolls out the UPI Circle feature with partial delegation
NPCI BHIM Services (NBSL), a wholly owned subsidiary of the National Payments Corporation of India (NPCI), launched the UPI Circle feature with partial delegation on the Bharat Interface for Money (BHIM) application on Wednesday. The latest feature on India's real-time payments system, Unified Payments Interface (UPI), enables a primary user, the UPI account holder, to authorise up to five secondary users to transact using UPI from their account. Transactions initiated by these secondary users will require explicit approval from the primary users via their UPI PIN on the application. Secondary users' transactions are visible to primary ones in real time. 'UPI Circle on BHIM is more than just a feature; it's a step towards a more inclusive and connected financial ecosystem. By offering a secure and flexible way to delegate financial responsibilities, UPI Circle enhances the way we share and manage our money and supports a more interconnected society,' said Lalitha Nataraj, managing director and CEO, NBSL. Senior citizens hesitant to use digital payments can be authorised by a family member on UPI Circle to approve payments on their behalf. Parents can allow their children to manage expenses through delegated access. Business owners can allow their staff to initiate payments such as fuel, tolls, vendor payments, among others. UPI Circle is available on the latest version of the BHIM app. The app also supports features such as split expenses, family mode, spends dashboard, multilingual support, and a redesigned user experience. NBSL was spun off as NPCI's wholly owned subsidiary in 2024. Developed by NPCI, BHIM was launched by Prime Minister Narendra Modi in 2016.
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Business Standard
23-04-2025
- Business
- Business Standard
UPI Circle launched on Bhim app: how it works and key benefits
NPCI BHIM Services Limited (NBSL) has launched a new feature on the BHIM app that allows users to securely delegate payment access for Unified Payments Interface (UPI) to up to five 'trusted individuals', with each transaction requiring real-time approval from the account holder. UPI Circle's launch comes at a time when the digital payments service is expanding steadily. UPI in April recorded 18.3 billion transactions amounting Rs 24.77 trillion, a 13.6 per cent jump in volume and a 12.8 per cent rise in value compared to March, according to NPCI data. 'UPI Circle on BHIM is more than just a feature; it's a step towards a more inclusive and connected financial ecosystem,' said Lalitha Nataraj, managing director and chief executive officer of NBSL. 'By offering a secure and flexible way to delegate financial responsibilities, UPI Circle enhances the way we share and manage our money.' What is UPI Circle All transactions are fully visible to the primary user, ensuring complete transparency and control. Why UPI Circle matters The feature is designed to promote financial inclusion and flexibility while maintaining security. Some key use cases highlighted by NBSL include: Support for senior citizens who may struggle with digital payments. Empowering young adults and children to manage limited expenses under parental supervision. Helping digitally inexperienced users, like dependents, manage finances with guidance. How to Use UPI Circle on BHIM 1. Update or download the BHIM app (version 4.0.2 or later). 2. Navigate to the 'UPI Circle' section on the home screen or menu. 3. Tap 'Add Secondary User' and input their UPI ID or scan their QR code. 4. Set the delegation type as 'Approve every payment.' 5. The secondary user receives an invite; upon acceptance, they can initiate payments. 6. The primary user receives a real-time approval request for every transaction and must authorize it via UPI PIN. UPI Circle is part of a broader upgrade to the BHIM app, which now also includes features like Split Expenses, Family Mode, and a Spend Dashboard.
