NPCI has directed banks and payment apps to stop all UPI peer-to-peer collect requests from October 1, 2025
The change applies to all member banks, PSPs, and UPI apps including PhonePe, Google Pay, and Paytm
National Payments Corporation of India (NPCI) has asked banks and payment apps to stop all peer-to-peer (P2P ) 'collect requests' on UPI from October 1 in a bid to combat financial fraud.
It is hereby informed that by October 1, 2025 UPI P2P collect shall not be allowed to be process in UPI, NPCI said in a circular dated July 29.
"All member banks, Payment Service Providers (PSPs) and UPI aPPs are hereby directed to implement the necessary changes in their systems and operational processes to ensure that no P2P collect transaction is initiated, routed, or processed on UPI beyond October 1, 2025," it said.
The decision means that all member banks and UPI apps — including PhonePe, Google Pay, and Paytm — will no longer be able to initiate, route, or process P2P collect transactions after the deadline.
Currently, the maximum amount that can be collected from another individual per transaction is ₹2,000, with a daily cap of 50 successful transactions.
"By eliminating this feature, UPI reinforces its position as a platform that is fast and easy, while also being secure and reliable. This change, removing a high-risk channel, will significantly reduce fraud. Now, all P2P transactions will be payer-initiated, requiring the user to scan a QR code," NTT DATA Payment Services India CFO Rahul Jain said.
In this case, the payer will have full control over the transactions they initiate, he said.
In 2019, NPCI had capped pull transactions at ₹2,000, but frauds continued. This move will act as a safeguard for users, and such frauds will now be eliminated.
