Has NPCI Banned P2P Collect Requests in UPI from October 1?
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Synopsis
In a significant move to tackle financial fraud, the NPCI is halting peer-to-peer collect requests in UPI. This decision impacts users while allowing merchants to continue utilizing the feature. With UPI's growth, understanding these changes is crucial for safe transactions.
Key Takeaways
- NPCI bans P2P collect requests starting from October 1.
- Merchants can still use the collect feature.
- The maximum collect amount is Rs 2,000 per transaction.
- P2P credit transactions are limited to 50 per day.
- UPI transactions have grown significantly, reaching over 1,946 crore in a single month.
New Delhi, Aug 13 (NationPress) To combat financial fraud, the National Payments Corporation of India (NPCI) has mandated that banks and payment applications cease all peer-to-peer (P2P) "collect requests" starting from October 1.
However, merchants are still permitted to send collect requests. The "collect request" or "pull transaction" feature enables a user to seek money from another user via UPI, a service that has frequently been exploited by fraudsters to deceive users into approving payments.
When a user tries to make a UPI payment on platforms such as Flipkart, Amazon, Swiggy, or IRCTC, these merchants send a collect request to the user's application. This request is processed once the user consents and provides their UPI PIN.
“As of October 1, 2025, UPI P2P Collect will no longer be processed in UPI,” the NPCI stated in a circular. All participating banks and UPI applications are barred from initiating, routing, or processing UPI P2P transactions, it added.
Currently, the upper limit a UPI user can "collect" from another individual per transaction is Rs 2,000. The number of successful P2P credit transactions is limited to 50 per day. While "collect request" frauds were prevalent in the initial stages of UPI, these incidents have significantly decreased following NPCI's imposition of the Rs 2,000 cap.
The collect feature allows users to remind friends or family of money owed without needing to send a separate message. Previously, small retailers used personal savings accounts for trade transactions and could send collection requests to clients for outstanding payments. Now, banks and UPI apps categorize these accounts as merchant transactions.
UPI stands as the foremost digital payment system in the nation, boasting around 400 million users. UPI transactions surged from 92 crore in FY 2017-18 to 18,587 crore in FY 2024-25, achieving a compound annual growth rate (CAGR) of 114%. During this timeframe, the monetary value of transactions escalated from Rs 1.10 lakh crore to Rs 261 lakh crore. In July 2025, UPI achieved a milestone, recording over 1,946 crore transactions in a single month for the first time.
Point of View
I firmly believe that while NPCI's decision aims to enhance security in digital transactions, it is crucial to balance safety with convenience. UPI has revolutionized payments for millions, and any changes must consider the user experience. NationPress will continue to advocate for transparency and user rights in this evolving landscape.
NationPress
03/12/2025
Frequently Asked Questions
What are P2P collect requests?
P2P collect requests allow users to ask for money from another person via UPI, which has been exploited by fraudsters.
Why is NPCI banning these requests?
The NPCI is banning P2P collect requests to combat rising financial fraud associated with this feature.
Will merchants still be able to use collect requests?
Yes, merchants will still have the ability to submit collect requests even after the ban takes effect.
What is the maximum amount that can be collected?
Currently, a maximum of Rs 2,000 can be collected per transaction under UPI.
How many P2P transactions can be made in a day?
Users can make up to 50 successful P2P credit transactions in a single day.
