UPI Update: Why NPCI Is Pulling the Plug on Person-to-Person Payment Requests

The National Payments Corporation of India (NPCI) has announced that the person-to-person ‘collect request’ feature will be permanently discontinued from October 1, 2025. As per an official circular issued on July 29, the move aims to strengthen transaction security and shut down a popular avenue for fraud.

The feature, known as a ‘pull transaction,’ allowed users to request money from others via UPI (Unified Payments Interface), often while splitting bills or reminding friends to repay loans.

The decision to discontinue the feature was taken as cybercriminals increasingly exploited it by sending payment requests under false pretenses, tricking unsuspecting users into approving them.

Earlier, NPCI tried to limit such scams by capping transaction values at Rs 2,000. This resulted in fewer cases of fraud, but the authorities decided to completely remove the feature for greater security.

Once the feature is discontinued, UPI payments will require the sender to either scan a QR code or select a contact, enter the amount, and authenticate with a UPI PIN.

Further, NPCI clarified that the change applies only to person-to-person requests and will not impact payments to merchants – meaning platforms like Amazon, Flipkart, Swiggy, Zomato, and IRCTC can continue to use collect requests at checkout.

These transactions are considered safe as they require explicit user approval along with UPI PIN entry before money is transferred.

Once the rule takes effect, banks and UPI apps will be barred from initiating, routing, or processing any P2P collect requests, marking the end of a feature that once made UPI more flexible, but increasingly risky in the age of online fraud.