Users using UPI might want to monitor any updates to the National Payments Corporation of India’s (NPCI) UPI payment regulations. Peer-to-peer (P2P) transactions, one of the most popular UPI features, are reportedly going to be eliminated by the NPCI.
Sending a request for money to a UPI account holder is a common usage for this functionality. In an effort to improve user security and lower financial fraud, this feature will be eliminated from UPI apps starting on October 1, 2025.
What NPCI’s New Rule States?
“By October 1, 2025, UPI P2P Collect shall not be allowed to be processed in UPI,” the NPCI said in a circular dated July 29. This implies that starting on the specified date, banks’ and payment apps’ “collect request” functionality will be completely eliminated. Sending money requests to other UPI app users and reminding them to split a bill or share the amount is a common usage for the P2P feature. However, scammers are taking advantage of this capability to defraud UPI customers and drain their accounts.
Why Peer-to-Peer Collect Requests Are Being Removed?
This feature is frequently used by scammers to send user requests under false pretences of an emergency or a fictitious role. Without understanding they have fallen for a scam, the user immediately begins to lose money after agreeing to the solicitations. Thus, eliminating the P2P function will lower the likelihood of scams.
P2P transactions were formerly restricted to INR 2,000 each. Although this has reduced a number of fraud cases, it was insufficient to completely prevent them. From October 1, users will no longer be able to send money using the UPI PIN unless they choose to utilise a QR code or the contact number.
How This Will Affect UPI Users
Flipkart, Amazon, Swiggy, and IRCTC are among the merchants whose transactions will not be impacted by the new UPI payment regulations. To finish the payment, these platforms will be permitted to exchange a collection request. Users will still be charged, though, since they must authorise the request and provide their UPI PIN in order to finish the payment.
Other Recent UPI Updates You Should Know
For processing UPI transactions on merchant applications and websites, ICICI Bank has begun charging payment aggregators (such as Google Pay, PhonePe, Mobikwik, Razorpay, etc.) a fee.
This regulation went into effect on August 1, 2025. “Mony,” a UPI-based app for travellers and non-resident Indians (NRIs), was released by Smart Payment Solutions, a business governed by the RBI.
It is no longer necessary to have an Indian bank account to make payments in India. They can pay immediately at stores, restaurants, and shops by scanning UPI QR codes. This is a component of the “UPI One World” program, which seeks to facilitate foreign tourists’ usage of India’s digital payment system.
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