UPI Collect Request for P2P Transactions Banned from Oct 1, 2025: What It Means for You
The National Payments Corporation of India (NPCI) has announced a major update to the Unified Payments Interface (UPI) system — from October 1, 2025, the collect request feature for person-to-person (P2P) transactions will be banned. This change is aimed at enhancing security and reducing fraud risks in India’s most popular digital payments platform. What does this mean for everyday users and merchants? Let’s unpack everything you need to know in this comprehensive guide.
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What is a UPI Collect Request?
UPI collect requests, also known as "pull transactions," enable one user to request money from another through their UPI app. Unlike direct payments where the sender initiates the transaction, here the recipient sends a request that the payer approves by entering their UPI PIN. This feature was widely used to conveniently remind friends or family members to pay back loans, split bills, or for small shopkeepers to send informal payment reminders.
Why is the P2P Collect Request Being Banned?
While convenient, the P2P collect request feature had become a popular avenue for fraudsters to deceive users. Cybercriminals exploited this by sending fake payment requests posing as acquaintances, service providers, or authorities, prompting users to unknowingly approve transfers to their accounts. Despite NPCI's earlier efforts to curb fraud by capping transaction amounts at ₹2,000 and limiting the number of successful requests per day, scams continued to rise.
To enhance user safety and prevent further fraud, NPCI has decided to completely discontinue P2P collect requests from October 1, 2025. Merchant collect requests, however, will remain unaffected.
What Changes Will You See After October 1, 2025?
No more P2P collect requests: You will no longer be able to send or receive money requests from other individuals via UPI apps.
New payment initiation methods: Users will have to manually initiate payments using:
Scanning QR codes (at stores or from individuals)
Selecting a contact or entering a UPI ID directly
Entering the payment amount and authorizing manually with the UPI PIN
This shift increases the control users have over their transactions, reducing the chance of falling prey to fraudulent requests.
Impact on Merchant Transactions
Importantly, this ban does not affect merchant collect requests. Online platforms like Amazon, Flipkart, Swiggy, Zomato, and IRCTC, and other merchants can still send collect requests as part of their checkout and payment process. These business-related collect requests are considered secure because they require explicit user approval and UPI PIN authentication before processing, unlike the vulnerable P2P collect feature.
The History and Purpose of Collect Requests
When UPI was introduced, collect requests were designed to make payments flexible and easier to manage peer-to-peer transactions such as splitting bills or reminding friends of money owed. Small business owners and shopkeepers using personal accounts also used collect requests for informal billing before registering as merchants.
As UPI evolved with features like split bills and dedicated merchant categories, the reliance on collect requests for personal payments increased but also proved open to misuse, leading to this regulatory change.
How Does This Affect You as a User?
If you frequently send or receive money using collect requests, you'll now need to adapt to scanning QR codes or directly sending payments initiated by you.
For casual sharing of expenses or lending money, direct payment methods will involve a more deliberate transaction initiation, which is a positive step for preventing scams.
Everyday merchants and service providers continue to function normally with collect requests intact, so online shopping and bill payments won’t be disrupted.
Important Safety Tips for UPI Users Post-Ban
Always verify the recipient’s identity before authorizing any payment.
Avoid authorizing payment requests from unknown or suspicious contacts.
Prefer scanning official QR codes or entering beneficiary details manually.
Use trusted and updated UPI apps to benefit from security enhancements.
Report suspicious transactions immediately to your bank or UPI app support.
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Frequently Asked Questions (FAQ)
1. Can I still send money requests to friends after October 1, 2025?
No, the P2P collect request feature will be disabled. You must send money manually by scanning QR codes or entering the recipient’s UPI ID.
2. Will merchants still be able to send payment collect requests?
Yes, merchant collect requests remain operational and continue as usual.
3. Why is NPCI banning P2P collect requests?
To prevent fraud and protect users from deceptive payment requests that have become frequent through this feature.
4. How can I split bills or share expenses now?
You can manually make payments to each person’s UPI ID or use UPI’s split bill feature.
Conclusion: Adapting to a Safer UPI Ecosystem
The upcoming ban on P2P collect requests by NPCI is a strategic move to safeguard millions of users from fraud and unauthorized transactions on UPI. While it changes how peer-to-peer money requests work, merchant payments remain seamless and secure. Users should embrace alternative payment initiation methods like scanning QR codes or direct payments, which enhance control and security.
Stay informed and cautious while making UPI transactions to enjoy the convenience of India’s most popular payment interface securely. If you haven't already, update your UPI app and adopt these safer payment habits before October 1, 2025.
Start today by reviewing our guide on How to Use UPI Safely and keep your digital payments secure!
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