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NPCI Will Disable UPI P2P Collect Requests From October

The move aims to eliminate a key fraud vector by forcing sender-initiated transfers, requiring apps to update systems by the October deadline.

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NPCI announces new UPI payment rules to reduce fraud. Here’s everything you need to know.

Overview

  • NPCI’s July 29 circular directs banks, PSPs and UPI apps to block all person-to-person collect transactions after October 1, covering initiation, routing and processing.
  • The P2P collect feature, originally for bill splitting and reminders, has been exploited by fraudsters sending deceptive payment requests.
  • Merchant collect flows used by Amazon, Flipkart, Swiggy, Zomato and IRCTC will remain operational under current safeguards.
  • From October, senders must initiate peer-to-peer payments by scanning QR codes or entering UPI IDs and authenticating with a PIN.
  • This step builds on earlier NPCI controls such as per-transaction caps, daily limits and API throttles to strengthen UPI’s security and stability.