Paytm introduces UPI-based Pocket Money feature for teens
18 May 2026, 11:53 AMUnder NPCI rules, the feature carries a maximum limit of Rs 5,000 per transaction and Rs 15,000 per month across the UPI network.
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Indian fintech company Paytm has launched a new "Pocket Money" feature that enables teenagers to make UPI payments without having their own bank accounts.
Built on the NPCI-backed UPI Circle framework, the feature allows parents and family members to delegate payment access to teenagers through the Paytm app while retaining spending oversight and control.
The service enables teenagers to pay for daily expenses such as metro rides, school and college canteens, shopping, mobile recharges and cab rides directly through their smartphones. Parents can monitor transactions in real time and set monthly spending limits.
Under NPCI rules, the feature carries a maximum limit of Rs 5,000 per transaction and Rs 15,000 per month across the UPI network. The facility supports both savings and current accounts, though services such as cash withdrawals and international payments are not permitted.
Paytm said teenagers can complete transactions independently without requiring access to their parents’ phones, OTPs or QR code sharing. The feature has also been integrated with the company’s "Spend Summary" tool, which categorises expenses to help families track spending patterns and allowances.
To strengthen security, Paytm has introduced temporary onboarding restrictions, including a Rs 500 spending cap during the first 30 minutes after setup and a Rs 5,000 limit within the first 24 hours. Parents can modify limits or revoke access at any time using their Paytm UPI PIN, while device lock protection remains mandatory.
The feature is currently available on the latest Android and iOS versions of the Paytm app.
Teen-focused fintech startups such as Fam, Walrus and Junio had previously introduced supervised spending products using prepaid cards and wallets.
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