Your Child Can Now Make UPI Payments: Here’s How UPI Circle Works for Kids

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The National Payments Corporation of India (NPCI) has launched a new initiative called UPI Circle, which allows children aged 10 to 18 to make digital UPI payments — securely and under parental supervision. This move promotes financial literacy and safe digital habits among young users.

Let’s explore how UPI Circle works, its benefits, and why it could be a game-changer in teaching kids the value of money and responsible spending.

What is UPI Circle?

UPI Circle is a dedicated UPI payment framework created especially for minors. It enables parents to set up a child-friendly UPI wallet or sub-profile within their own UPI apps. Children can use it to make small, approved transactions while parents retain full control.

  • Children can make payments up to ₹2,000 per day
  • Only limited and safe merchants are permitted
  • Parental consent or oversight is required for each transaction
  • No bank account is needed — UPI wallet-based transactions are allowed

How Does UPI Circle Work?

Setting up and using UPI Circle is simple and parent-friendly. Here’s a step-by-step process:

  • Step 1: Parent logs in to their UPI app (PhonePe, Google Pay, Paytm, etc.) and selects UPI Circle.
  • Step 2: A child profile is created with basic KYC or identification.
  • Step 3: Spending limits, transaction categories, and controls are set by the parent.
  • Step 4: The child can initiate a transaction — with or without parental approval, depending on settings.
  • Step 5: Parents receive notifications and can monitor every transaction.

Benefits of UPI Circle for Kids

  • 📚 Financial Awareness: Kids learn the value of money and responsible spending.
  • 🛡️ Parental Control: Every payment is monitored or approved by parents.
  • 💳 Safe for Small Expenses: Ideal for canteen bills, books, stationery, online classes, etc.
  • 📲 Early Digital Habit: Prepares children for a cashless and digital future.

Which Apps Support UPI Circle?

Currently, UPI Circle is being rolled out in phases across major UPI apps like PhonePe, Paytm, Google Pay, and BHIM. More banks and fintech apps are expected to adopt it soon.

Conclusion: A Smarter Start to Digital Payments for Kids

UPI Circle is a smart, secure, and educational initiative that lets children experience digital payments in a safe way. It empowers them to become financially responsible while giving parents peace of mind through complete control and visibility.

With UPI Circle, kids get an early exposure to digital finance — a step that builds trust, awareness, and future-ready habits.

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