This big feature is going to be closed on UPI from October 1! NPCI's 'surgical strike' to stop online fraud

NPCI has instructed all banks and payment apps (like Google Pay, PhonePe, Paytm) to completely stop peer-to-peer (P2P) 'Collect Request' on UPI from October 1, 2025.

UPI collect request ban: "Sir, you have received a cashback of Rs 5000 in your account, to get it, just approve the request received on your UPI app..." If you have ever received such a call, then be careful! To root out such fraud, the National Payments Corporation of India (NPCI) has done a very big and historic surgical strike.

NPCI has directed all banks and payment apps (like Google Pay, PhonePe, Paytm) to completely stop peer-to-peer (P2P) 'Collect Request' on UPI from October 1, 2025. This is like a 'surgical strike' on online fraudsters, which will make the money of crores of common UPI users more secure.

What is this 'Collect Request'?

'Collect Request' or 'Pull Transaction' is a feature of UPI, which allows you to ask for money from another person. Suppose, you have to take Rs 500 from your friend Rahul. You will go to your UPI app and enter Rahul's UPI ID and send a 'Collect Request' of Rs 500. Rahul will get a notification, and as soon as he enters his UPI PIN and approves it, Rs 500 will be credited to your account. This feature was made to remind friends or relatives about the outstanding money. But, fraudsters made it their biggest weapon.

This is how the fraud used to happen

Fraudsters used to call you and trap you in the name of lottery, cashback, job or selling goods on OLX. They used to say that we are sending you money, and used to send a request on your phone. Innocent people used to enter their UPI PIN thinking that they have to enter the PIN to get the money, but as soon as they entered their UPI PIN, money used to be deducted from their account and went to the fraudster's account.

Why and what did NPCI change?

NPCI has taken this big step to stop this fraud happening with millions of people.

In its circular, NPCI has clearly stated, "It is notified that till October 1, 2025, UPI P2P collect will not be allowed to be processed in UPI. This ban has been imposed on peer-to-peer (P2P) i.e. collect request sent by a common user to another common user."

So will you not be able to make online payments now? Absolutely not!

There is absolutely no need to panic about this news. It will not have any negative impact on your and our daily UPI transactions. The most important thing is that merchants (ie shopkeepers and companies) will be able to send you collect requests as before.

When you buy any goods on Flipkart, Amazon, Swiggy or IRCTC and choose the option of payment through UPI, these companies send a payment request to your phone. You approve it by entering your PIN. This process will continue as before. As before, you will be able to send money (Push Transaction) directly to anyone by scanning QR code, mobile number or UPI ID. Only the feature of asking for money (Pull Transaction) has been closed for the general public.

Why was this step taken now?

However, NPCI had earlier reduced the limit of collect request to ₹ 2,000 per transaction to stop this fraud, which reduced fraud significantly. But fraudsters were still trapping people in new ways. It had become necessary to take this tough step to make the security of UPI, which has about 40 crore users today and on which more than 1,946 crore transactions take place every month, more impenetrable.

In the early days, even small shopkeepers used to send collect requests to customers for outstanding payments from their personal UPI ID. But now most banks and UPI apps classify such accounts as 'merchant accounts', so they will not be affected by this ban.

What does this mean for you?

As a common UPI user, this is a great news for you. Now you will not have to fear approving a fraud request by mistake. This will make your online transactions more secure than ever. Since you will be able to send money and approve payment requests from companies as before, there will be no inconvenience in your daily use.

Conclusion

This decision of NPCI is a milestone in making UPI, which has become the backbone of Digital India, more secure. Although the 'Collect Request' feature was started as a convenience, fraudsters had made it an easy way to commit fraud. By closing this route for the common people, NPCI has prioritized the safety of the money of crores of users. This move shows that India's digital payments ecosystem is not only growing rapidly, but is also constantly evolving over time to make itself more secure and reliable.

Frequently Asked Questions (FAQs)

Question 1: When will this new rule come into effect?

Answer: This new rule will come into effect across the country from October 1, 2025.

Question 2: Will I no longer be able to ask my friend for money on UPI?

Answer: Yes, from October 1, you will not be able to ask for money by sending a 'collect request'. You will have to ask your friend to send money by calling or messaging him directly.

Question 3: Will payment requests coming from Swiggy or Amazon also stop?

Answer: No, payment requests sent by merchants i.e. companies and shopkeepers will continue to work as before. This ban is only on transactions between common users (P2P).

Question 4: If I have to take money from someone, what is the best way now?

Answer: You can send your QR code to that person, or give your UPI ID/mobile number to which he can directly send (push) money to you.

Question 5: Why did the government take this step?

Answer: This step has been taken to prevent online financial fraud. Fraudsters used to misuse the 'Collect Request' feature to make people believe that they are sending money, and then withdraw money from their account by making them enter the PIN.