From October 1, 2025, users of Unified Payments Interface (UPI) apps such as PhonePe, Google Pay, and Paytm will no longer be able to use a widely relied-upon feature. The National Payments Corporation of India (NPCI) has announced that it will discontinue peer-to-peer (P2P) ‘collect requests’—a function that allows users to send payment requests to other account holders. The move aims to strengthen security and curb financial fraud in the UPI ecosystem.

NPCI’s new UPI change

In a circular issued on July 29, NPCI confirmed that “UPI P2P Collect shall not be allowed to be processed in UPI” from October 1, 2025. This means the option to send a payment request through banks or payment apps will be phased out entirely.

The UPI collect request is often used to remind friends to settle shared expenses or split bills. However, fraudsters have increasingly exploited this feature by posing as someone in urgent need or in an official capacity, tricking users into approving requests. Once accepted, funds are instantly debited from the victim’s account.

Although the per-transaction limit for P2P requests was capped at ₹2,000 to reduce scams, fraud attempts have persisted. Under the new rules, users will need to make payments by scanning a QR code or directly selecting the recipient’s contact number and authorising the transfer with their UPI PIN.

Impact on merchant payments

The change will not affect transactions with merchants such as Amazon, Flipkart, Swiggy, or IRCTC. Businesses will still be able to send collect requests for payments. However, customers must approve these requests and enter their UPI PIN before the transaction is completed.