Module: General Practice
Q43: Which of the following terms best describes the "UPI Circle" feature introduced by the NPCI, and what is the primary operational relationship it establishes between users?
✅ Correct Answer: B
Concept Definition: "UPI Circle" is a feature designed by the National Payments Corporation of India (NPCI) to enable Delegated Payments.
It allows a "Primary User," who holds the bank account, to link a "Secondary User," such as a family member or employee, to their UPI ID.
Structural Breakdown: 1. Primary User: This user controls the funding account and sets the spending limits.
2. Secondary User: This user can initiate payments using the Primary's account.
They can do this either independently under "Full Delegation" or with approval under "Partial Delegation." 3. Capacity: A Primary User can authorize up to 5 Secondary Users.
Historical Context: Launched broadly between late 2024 and early 2025, this feature targets financial inclusion for dependents, such as minors or the elderly, who may not have their own bank accounts.
It effectively replaces the need for physical "Add-on Cards" in the digital UPI ecosystem.
It allows a "Primary User," who holds the bank account, to link a "Secondary User," such as a family member or employee, to their UPI ID.
Structural Breakdown: 1. Primary User: This user controls the funding account and sets the spending limits.
2. Secondary User: This user can initiate payments using the Primary's account.
They can do this either independently under "Full Delegation" or with approval under "Partial Delegation." 3. Capacity: A Primary User can authorize up to 5 Secondary Users.
Historical Context: Launched broadly between late 2024 and early 2025, this feature targets financial inclusion for dependents, such as minors or the elderly, who may not have their own bank accounts.
It effectively replaces the need for physical "Add-on Cards" in the digital UPI ecosystem.