NPCI to Discontinue UPI P2P ‘Collect Requests’ from October 1 to Curb Fraud

In a major move aimed at strengthening the security of digital payments, the National Payments Corporation of India (NPCI) has announced that peer-to-peer (P2P) ‘collect requests’ on UPI will be discontinued from October 1, 2025. The decision affects all member banks and leading UPI apps like PhonePe, Google Pay, and Paytm, and is expected to drastically reduce fraud incidents on the Unified Payments Interface (UPI) network.

What Are ‘Collect Requests’ in UPI?

A ‘collect request’ is a feature on UPI that allows users to send a payment request to another user, who then approves the transaction. These are also referred to as pull transactions, unlike standard push transactions where the payer initiates and completes the transfer themselves.

Currently, P2P collect requests on UPI

  • Are limited to ₹2,000 per transaction
  • Have a cap of 50 successful transactions per day
  • Despite these restrictions, fraudsters have exploited this feature to trick users into unknowingly approving payment requests, leading to financial losses.

What Will Change from October 1, 2025?

According to NPCI’s circular dated July 29, 2025,

  • All member banks, Payment Service Providers (PSPs), and UPI apps must discontinue P2P collect requests
  • The feature will be disabled across platforms like PhonePe, Google Pay, and Paytm
  • Only payer-initiated (push) transactions will be permitted for P2P payments
  • This means users will now have to manually scan a QR code or enter recipient details to send money—enhancing control and eliminating accidental approvals of fraudulent requests.

Why NPCI Made This Move

The change comes in response to growing concerns over UPI fraud via collect request misuse. Experts and industry stakeholders praised the decision, noting,

  • Rahul Jain (CFO, NTT DATA Payment Services India): “By eliminating this high-risk feature, UPI will be more secure and reliable.”
  • Reeju Datta (Co-founder, Cashfree Payments): “This change closes a long-exploited loophole and empowers users by reinforcing trust and transparency.”

Even though NPCI had capped collect transactions in 2019, frauds persisted. The complete removal is now seen as a decisive safeguard in India’s journey toward a safer digital economy.

Broader Implications for Digital Payments

This update reflects NPCI’s broader commitment to,

  • User protection through strict control on transaction initiation
  • Simplifying UPI’s interface while maintaining its popularity and efficiency
  • Boosting confidence in digital payment systems ahead of further innovations in UPI and CBDC integration
  • It aligns with India’s mission to lead in secure, inclusive, and scalable fintech infrastructure globally.
Shivam

As a Content Executive Writer at Adda247, I am dedicated to helping students stay ahead in their competitive exam preparation by providing clear, engaging, and insightful coverage of both major and minor current affairs. With a keen focus on trends and developments that can be crucial for exams, researches and presents daily news in a way that equips aspirants with the knowledge and confidence they need to excel. Through well-crafted content, Its my duty to ensures that learners remain informed, prepared, and ready to tackle any current affairs-related questions in their exams.

Recent Posts

Which Beverage is known as the Queen of Beverages?

When we think of beverages that brings the whole world together, two name stands out:…

34 mins ago

India Approves IBC Amendment Bill 2026 to Speed Up Insolvency Resolution

To strengthen the financial system of India, Lok-Sabha have passed the Insolvency and Bankruptcy Code…

38 mins ago

AP Science City Signs 5-Year MoU with CSIR-NIScPR to Boost Science Outreach

Andhra Pradesh Science City has signed the strategic agreement with CSIR-NIScPR on the March 30…

42 mins ago

India’s Industrial Output Grows 5.2% in February 2026: IIP Data Explained

Industrial output of the India has recorded the 5.2% growth in February 2026. It is…

1 hour ago

India Census 2027 Digital: Phase 1 Starting April 1, 2026 Details

India will set to begin the Census 2027 from the next year in 2027. It…

1 hour ago

NASA’s Artemis II Mission Explained: How Humans Will Return to the Moon in 2026

NASA is preparing for the historic milestone as the Artemis II mission is aims to…

2 hours ago