The National Payments Corporation of India (NPCI) has announced that from October 1, 2025, the peer-to-peer “collect request” feature on UPI apps will be permanently discontinued. This decision applies to all major platforms such as Paytm, PhonePe, and Google Pay. The move is aimed at curbing growing online fraud cases that have exploited the system, while ensuring that core UPI services like direct money transfers and merchant payments remain unaffected.
Initially designed to simplify digital transactions, the collect request option allowed users to send a payment request instead of asking for money manually. However, fraudsters increasingly misused it by sending deceptive requests that tricked users—especially the elderly or new digital users—into authorizing unintended payments. The rise of such scams accelerated during the pandemic, particularly in smaller towns and rural regions, where digital awareness is still developing.
Authorities reported frequent instances where scammers impersonated merchants, service providers, or even acquaintances to solicit funds. With complaints and losses on the rise, NPCI, in consultation with banks and payment providers, concluded that eliminating peer-to-peer collect transactions was the most effective solution to restore trust.
From October, banks and UPI apps must block all such transactions. However, merchant-initiated collect requests—such as those from utility providers, e-commerce platforms, or service companies—will continue as usual since they are backed by stronger authentication and regulatory checks.
Experts view the decision as a balance between convenience and safety. While users may miss the ease of sending requests, eliminating a vulnerable feature strengthens consumer protection. Digital payment advocates argue that this step underscores NPCI’s responsibility to prioritize security over experimental tools.
By removing peer-to-peer collect requests, NPCI is reinforcing public confidence in UPI and safeguarding India’s fast-growing digital payments ecosystem.
