New UPI Rule Effective from October 1, 2025
NPCI announces discontinuation of Peer-to-Peer Collect Request feature to curb fraud
The National Payments Corporation of India (NPCI) has announced that starting October 1, 2025, the Peer-to-Peer (P2P) 'Collect Request' feature on the Unified Payments Interface (UPI) will be disabled. This move aims to prevent fraud associated with this feature.
The 'Collect Request' or 'Pull Transaction' feature allowed users to request money from others. However, scammers were misusing it to deceive users into unknowingly approving payments. To address this issue, NPCI has decided to discontinue the feature for P2P transactions.
According to a circular issued on July 29, after October 1, 2025, UPI apps and member banks will not be allowed to initiate, route, or process any P2P collect requests. However, the feature will remain available for merchant transactions, meaning businesses can still send payment requests to customers.
Purpose of the Collect Request Feature
The feature was originally introduced to help users remind friends or family members about pending payments. But with the introduction of other UPI features like split payments, its usage has declined.
UPI’s Growing Popularity in India
UPI has become the most popular digital payment method in India, processing nearly 20 billion transactions every month, with a total transaction value of around ₹25 lakh crore. There are approximately 400 million unique UPI users across the country.
This decision by NPCI is a part of broader efforts to enhance security and protect users from potential fraud in the digital payment ecosystem.