UPI P2P Collect Requests to Cease by 2025 to Curb Financial Fraud

The National Payments Corporation of India (NPCI) will halt peer-to-peer collect requests on UPI from October 2025 to reduce financial fraud. Banks and payment apps will need to adjust their systems, shifting all transactions to a payer-initiated model. This change aims to enhance security and reliability.

The National Payments Corporation of India (NPCI) is taking decisive action to combat financial fraud by instructing banks and payment apps to halt all peer-to-peer 'collect requests' on the Unified Payments Interface (UPI) by October 1, 2025.

In a circular issued on July 29, NPCI directed member banks, Payment Service Providers, and UPI apps to make necessary system and process changes. This mandate will affect popular UPI apps such as PhonePe, Google Pay, and Paytm, which will no longer process these transactions after the set deadline.

The decision removes a high-risk payment channel to enhance UPI's security and reliability. By requiring payer-initiated transactions, NPCI aims to give users better control, reducing fraud risks. The existing limit for such collect transactions, capped at Rs 2,000, with a daily cap of 50, will be eliminated.

(With inputs from agencies.)