NPCI To End UPI Person To Person Collect Requests From October To Curb Fraud

The National Payments Corporation of India (NPCI), operator of the widely used Unified Payments Interface (UPI), has directed banks and payment apps to discontinue all peer-to-peer (P2P) collect requests from October 1, 2025, as per news reports. 

The move is aimed at reducing financial fraud associated with this feature, which allows one user to request funds from another through UPI.

What Are UPI Collect Requests

A collect request, also called a pull transaction, enables a UPI user to send a payment request to another subscriber. This facility has been used for genuine purposes such as requesting a repayment from friends or splitting bills after group outings. However, fraudsters have exploited the feature to trick users into authorising payments.

Details Of The NPCI Directive

In a circular dated 29 July 2025, NPCI informed that by October 1, 2025, UPI P2P collect requests will no longer be processed. Currently, the maximum amount that can be collected from another individual per transaction is ₹2,000, with a daily cap of 50 successful transactions.

While the directive ends P2P collect requests, merchant collect requests will continue. For example, when paying through apps like Flipkart, Amazon, Swiggy or IRCTC, the platform may send a collect request which the customer approves using their UPI PIN.

Decline In Fraud Cases

In the early stages of UPI adoption, collection request fraud was common. These cases reduced significantly after NPCI capped the transaction value at around ₹2,000. Still, to further protect users, NPCI has decided to phase out the feature entirely for P2P transactions.

Impact On Users And Merchants

The removal of the P2P collect option means users will need to rely on alternatives such as the UPI split bill function or direct payments. Earlier, small shopkeepers using personal accounts could send collect requests for customer payments, but now such accounts are classified as merchant accounts.

Read More: Ather Energy Expands EV Charging Network in Tamil Nadu with Over 430 Fast-Charging Points! 

Conclusion 

UPI remains India’s most popular digital payment method, processing nearly 20 billion transactions a month, worth approximately ₹25 lakh crore. There are an estimated 40 crore unique UPI users across the country.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.