UPI Payment New Rule: NPCI Orders Banks and Payment Apps to Halt P2P ‘Collect Request’ Services by October 1

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UPI Payment New Rule: You will no longer be able to directly request money from anyone on the UPI app. NPCI has directed banks and payment apps to discontinue person-to-person collect request services by October 1st.

UPI payments have made money transactions incredibly easy. With a single click, payments of thousands are processed in seconds. The stress of carrying cash around has been eliminated. Furthermore, if you owe someone money or need to ask for money, it’s also become easier. However, the National Payments Corporation of India (NPCI) has decided to discontinue the UPI app’s P2P service.

Starting October 1st, you won’t be able to directly ask for money from anyone, including friends and relatives, on payment apps like Phone Pay and Gpay. A “collect request” or “pull transaction” is a UPI feature that allows you to ask for money from another person. However, this feature is being discontinued. This decision was made to make UPI payments more secure.

How does this feature work?

Let’s say you need ₹1,000 from someone. Until now, you could simply go to the app, enter the person’s UPI ID, and send them a collect request for ₹1,000. As soon as the other person accepts and enters their PIN, you receive the payment.

Only merchant sites will be able to send requests

This service is being discontinued for general users from October 1. This means that merchant sites like IRCTC, Flipkart, Amazon, and Netflix can no longer send payment requests directly to their users.

Objective: To prevent online fraud

The purpose of discontinuing this feature is to make online payments more secure. Previously, NPCI had reduced the collect request limit to ₹2,000, taking a decision in this direction.

Why was this feature introduced?

This UPI payment feature was introduced to facilitate transactions. Its original purpose was to remind friends or relatives of outstanding payments and simplify online shopping payments. However, fraudsters exploited it to the fullest and extort significant amounts of money from people.

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