In a significant move to enhance digital payment security, the National Payments Corporation of India (NPCI) has announced the discontinuation of peer-to-peer (P2P) ‘collect requests’ on UPI starting October 1, 2025. This decision aims to combat fraud incidents on the Unified Payments Interface (UPI) network involving collect requests.
What Are ‘Collect Requests’ in UPI?
- A ‘collect request’ on UPI allows users to send payment requests to others for approval.
- These transactions are known as pull transactions, unlike standard push transactions initiated by the payer.
Current P2P Collect Request Restrictions:
- Limited to ₹2,000 per transaction
- Cap of 50 successful transactions per day
Changes Effective from October 1, 2025
- All member banks, Payment Service Providers (PSPs), and UPI apps must cease P2P collect requests.
- The feature will be disabled on platforms like PhonePe, Google Pay, and Paytm.
- Only payer-initiated (push) transactions will be allowed for P2P payments.
Reasons for NPCI’s Decision
- Addressing concerns over UPI fraud through collect request misuse.
- Enhancing security, reliability, and user control over transactions.
Expert Insights:
- 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 reinforces trust and transparency for users.”
Impact on Digital Payments
- Enhanced user protection through stricter transaction initiation controls.
- Simplified UPI interface while ensuring efficiency and popularity.
- Boosting confidence in digital payment systems for future UPI and CBDC integrations.
Key Takeaways for Competitive Exams:
- NPCI to discontinue UPI P2P ‘collect requests’ from October 1, 2025, to combat fraud.
- Users will need to manually initiate payments for enhanced security and control.
- This decision aligns with India’s goals for a secure and scalable fintech infrastructure.
