The National Payments Corporation of india (NPCI) has announced a significant measure to combat rising fraud on the UPI platform. Effective october 1, 2025, the P2P (peer-to-peer) collection request facility, which allows users to send payment requests through UPI apps, will be discontinued across all member banks and payment service providers (PSPs).
This decision stems from NPCI's findings that many fraudsters exploited the P2P collection feature to deceive unsuspecting users. The ability to send payment requests often led to accidental transfers, leaving individuals vulnerable to scams.
With the impending change, all UPI transactions will require the payer to initiate the payment. Users will need to either scan a QR code or manually enter the UPI ID of the recipient to complete their transactions. This shift aims to enhance security, granting users full control over their financial interactions.
Expert opinions, such as that of rahul Jain, CFO of NTT Data Payment services india, highlight that this reform will bolster the safety of UPI transactions, ensuring that users are safeguarded against potential fraud.
Currently, there is a restriction of ₹2,000 per transaction and a maximum of 50 payment requests per day. However, despite these limits, fraudulent activities have persisted. This proactive step by the NPCI prioritizes user security by eliminating a key avenue for fraudsters.
In summary, the NPCI's decision to halt the P2P collection request facility from october 1, 2025, is a critical measure to enhance UPI security and protect users from potential scams, ensuring that all transactions are user-initiated for improved safety.
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