The National Payments Corporation of india (NPCI) has announced a significant measure to combat online fraud by banning peer-to-peer (P2P) "Collect Requests" on the Unified Payments Interface (UPI) from october 1, 2025. This ban targets fraudulent activities where scammers deceive individuals by claiming to send money, leading victims to unknowingly authorize transactions that deduct funds from their accounts.
"Collect Request" allows users to request money from others, which has unfortunately been exploited by fraudsters. For example, scammers might call individuals, promising cashbacks or lottery winnings, and then send a request for approval. Victims, believing they are receiving money, enter their UPI PIN, resulting in funds being transferred to the scammer instead.
The NPCI's directive aims to enhance the security of UPI, which has over 400 million users and processes nearly 1,946 crore transactions monthly. While this ban eliminates the ability for individuals to send and receive money through "Collect Requests," it will not hinder general UPI transactions. Users can still make payments to merchants or send money directly through QR codes or UPI IDs.
This decisive action follows previous measures, including reducing the transaction limit for "Collect Requests" to ₹2,000, which, while effective, did not fully eliminate the issue. By prioritizing user safety, NPCI is reinforcing the integrity of India's digital payments ecosystem, ensuring that it evolves to meet the challenges posed by online fraud. This change offers peace of mind to UPI users, as it minimizes the risk of inadvertently approving fraudulent requests.
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