In a move to combat financial fraud, the National Payments Corporation of India (NPCI) has directed banks and payment apps such as Google Pay, PhonePe and Paytm to stop all peer-to-peer (P2P) 'collect requests' on the Unified Payments Interface (UPI) as of October 1, 2025.
According to a circular dated July 29, "All member banks, Payment Service Providers (PSPs), and UPI apps are hereby directed to implement the necessary changes in their systems and operational processes to ensure that no P2P collect transaction is initiated, routed, or processed on UPI beyond October 1, 2025".
This means that after the deadline, popular UPI apps like PhonePe, Google Pay, and Paytm, along with all member banks, will no longer be able to initiate, route, or process these P2P collect requests.
Aimed to prevent fraud
Previously, a user could request up to Rs 2,000 from another individual in a single transaction, with a daily limit of 50 successful transactions. However, this feature has been a frequent channel for fraud, prompting NPCI's decision.
"By eliminating this feature, UPI reinforces its position as a platform that is fast and easy, while also being secure and reliable," said Rahul Jain, CFO of NTT DATA Payment Services India. He added that the change "will significantly reduce fraud" by removing a high-risk channel.
With this new rule, all P2P transactions will now be payer-initiated. This means a user will have to scan a QR code or enter a UPI ID to send money, giving them full control over the transaction.
"NPCI's decision to discontinue UPI 'collect' requests closes a loophole long exploited in payment scams, marking a decisive step toward a safer digital economy," said Reeju Datta, co-founder of Cashfree Payments. He believes this change champions user-initiated transactions, giving consumers greater control and transparency while reinforcing trust in digital payments.
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