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What is UPI Circle? A Beginner-Friendly Guide

Updated on: 16 Mar 2026

The way payments are evolving in India is rapid, with UPI (Unified Payments Interface) already driving digital payment innovation and making transactions simple and widely accessible. It has also become a key part of the Digital India movement and the government’s push towards a cashless India movement.

Recently, the National Payments Corporation of India (NPCI), under the guidance of the Reserve Bank of India (RBI), launched a new feature called UPI Circle to make group payments smarter, safer, and more transparent.

This blog explains its meaning, how it works, its benefits and how it supports broader financial goals in India.

What is UPI Circle?

The National Payments Corporation of India (NPCI) has recently introduced UPI Circle as a new feature to enhance the UPI experience. It enables users to form their own private or semi-private groups in order to manage their shared payments, group expense management, or recurring digital payments easily. It acts as a smart tool to simplify transactions among a trusted group, whether it’s splitting rent with flatmates, handling club or society fees, or tracking shared expenses with friends or colleagues. UPI Circle supports UPI group payments and replaces paper reminders or schedules, as this type of service allows automating, sending, and tracking payments within the group.

Security Features in UPI Circle

UPI Circle prioritises safety with advanced UPI security features, ensuring your group transactions are protected at every step:

End-to-end encryption: All transactions are encrypted from sender to receiver, ensuring privacy and preventing interception by hackers or unauthorised parties.
Multi-factor authentication: Payments require UPI PIN or similar verification, adding an extra security layer before transactions are processed successfully.
Protection against unauthorised access: Even if someone gains access to your phone, funds cannot be transferred without proper UPI PIN verification.
Admin-controlled permissions: Group admins can restrict withdrawals, ensuring no member moves funds without explicit approval, reducing risk of misuse.
Detailed activity logs: Every incoming and outgoing payment is recorded, enabling transparent tracking, auditing, and accountability among all group members.

How Does UPI Circle Work?

Using UPI Circle, a group admin can create a circle of users with their UPI IDs or mobile numbers. Inside this circle, the admin can send payment requests, track who has paid, and even set up recurring payment requests. This makes shared expense tracking simple, transparent, and convenient for everyone in the group.

For example:

Create a Circle for Shared Rent: You and your three friends share rent, and you build a ‘Flatmates’ circle on your UPI app.
Set Monthly Payment Requests: Create a monthly payment request of ₹5,000 to each of your friends and due date as the 3rd of each month.
Friends Get Automatic Notifications: Your friends will get automatic notifications about the payment request on the specified date, and you do not need to follow up manually.
Track Who Paid and Who Didn’t: You will also be able to see in real-time that you have paid, plus who still has to pay, all in one location.

UPI Circle Limit

Just like regular UPI transactions, the UPI Circle limit is governed by the daily UPI transaction limit set by banks and NPCI. This ensures that transactions remain safe and controlled while still being flexible for group usage. The feature is also a part of NPCI digital initiatives aimed at making digital payments smarter, more reliable, and easier for users. As of now:

Most apps allow ₹1 lakh/day per individual.
The same limit applies to group transactions inside UPI Circle.
Some banks or apps may set lower limits, so always check in-app notifications.

Because it is governed by NPCI and RBI rules, users can trust that limits are standardised and funds are protected.

How to Use UPI Circle?

Here’s a step-by-step breakdown of how to use UPI Circle:

Download a UPI-Enabled App: Download and open any UPI-supported app, such as BHIM, PhonePe or even your bank app, to start creating a circle.
Find the UPI Circle option: This can be found in the app menu by searching for something like Circle or Group option; it can also be listed under payments or the UPI section.
Create and Name Your Circle: Start a new circle and give it a defined name, such as Office Snacks Fund or Weekend Trip Contributions.
Add Members to the Circle: Add by Upi or mobile numbers, and people will be sent an invitation to join your circle group.
Set a Payment Request: Just state how much and when, and why. This assists members in knowing the purpose of the contribution and when to do it.
Send the Request to Members: When it is set, send the request. Every member will receive an in-app notification to pay the amount that you have assigned.
Track and Get Payment Updates: You will be notified who has made a payment and who has not. The app keeps you informed of payments on a real-time basis.

What are the Benefits of UPI Circle?

UPI Circle brings a host of benefits that make managing shared expenses much easier:

Easy Group Payments: Group payments can be conveniently organised in a single setup, with recurring reminders, and can be easily tracked without any need of embarrassment that comes with following up on payments.
Transparency: All transactions, payment history, and dues are visible to all the members of the circle, ensuring a seamless payment experience without any ambiguity, unlike the traditional method of cash collection.
Saves Time: No more spreadsheets and manual tracking. The app has everything concerning the payment arranged and visible to all in real-time.
Recurring Requests: Great to repeat similar costs such as a rent payment, OTT subscription, or group savings with a set automatic reminder and automatic collection of money.
Safe and Secure: All transactions are encrypted and secure with the backing of UPI and controlled by RBI, hence the security of the user is guaranteed.

UPI Circle and Digital India

The launch of UPI Circle also ties into India’s Digital India and Cashless Economy vision, reducing dependence on cash-based collections and increasing formal financial adoption in groups and societies.
By digitising small, recurring, and group-level transactions, NPCI and RBI are encouraging financial inclusion and building stronger trust in digital payments.

Use the Fibe Axis Credit Card for UPI Circle Payments

One unique benefit for Fibe users is the Fibe Axis Bank Credit Card. You can link it to UPI apps and use your credit line for UPI Circle contributions.

Earn rewards on group expenses.
Extend repayment flexibility while settling shared dues.
Enjoy benefits unavailable with a normal bank account.

This makes UPI Circle not just a convenience tool but also a credit-friendly solution for young professionals and students.

FAQs

Which banks have the UPI Circle?

Major banks in India that participate in UPI, such as HDFC Bank, ICICI Bank, SBI, and Axis Bank, among others, are likely to sponsor UPI Circle under their partner apps. The availability can be based on updates to the app.

Which app is best for UPI Circle?

The UPI Circle was launched first through the BHIM App by NPCI; thus, it is one of the most reputable platforms. The feature will be released gradually by other apps such as PhonePe, Paytm, Google Pay, and the banking apps.