NPCI Announces Closure of This UPI Service from October 1 – Check Details

– Advertisement –

P2P Collect Request: Do you also use UPI (Unified Payment Interface) for transactions, if yes then be careful because NPCI (National Payments Corporation of India) has taken such a big step that will change the payment habits of millions of users.

Actually, a very used feature Peer-to-Peer (P2P) “Collect Request” on UPI apps will be removed by NPCI from October 1, 2025. NPCI says that fraudsters are using this feature on a large scale. In such a situation, it has become necessary to shut it down so that financial fraud can be curbed.

Let us tell you that the ‘Collection Request’ or ‘Pull Transaction’ feature allows users to request money from another customer via UPI. Fraudsters often misuse this feature to trick users into authorizing payments, so this ban has been imposed. However, merchants can continue to submit collection requests even after October 1.

What is the P2P Collect Request feature?

With this feature, any user can send a payment request to another UPI user, which on acceptance, the other person sends the money by entering his UPI PIN. Initially this feature came to make payments easier, but over time it became the favorite weapon of scammers. After this, NPCI has said that from October 1, 2025, UPI P2P collect will not be allowed to be processed in UPI.

What are the rules now?

The rule is that all member banks and UPI apps are completely barred from initiating, routing or processing UPI P2P collect transactions. Currently, a UPI user can collect up to a maximum of Rs 2,000 in a single transaction from another individual.

What is the share of bridge transaction?

Industry experts say that this decision is not very difficult because the share of “pull” transactions is only 3% of the total transactions of UPI. This means that this change will not cause much trouble to most UPI users. This step is an important initiative towards creating a secure digital payment system.

NPCI gave information to all banks and fintech companies

After this decision, it may be necessary for merchants to follow KYC rules for ‘pull’ transactions, which will further curb fraud. NPCI has sent information about this change to all banks and fintech companies so that they can prepare for it. This will make the use of UPI even more secure and increase customer trust.

How much fraud in the last three years?

These are the statistics of UPI fraud

2022-23 – Total frauds worth Rs 573 crore occurred in 7.25 lakh cases.

2023-24 – Total frauds worth Rs 1087 crore in 13.42 lakh cases.

2024-25 – Total frauds worth Rs 485 crore in 6.32 lakh cases.

When Finance Minister Nirmala Sitharaman was questioned about preventing fraud in UPI transactions and making transactions more secure, she said that the government is making efforts to stop these cases. Strict steps are being taken jointly by NPCI, RBI and the government.

How much has the transaction figure increased since 2017?

Minister of State for Finance Pankaj Chaudhary said in a written reply in the Lok Sabha that while there were only 92 crore transactions through UPI in 2017-18, this figure will increase to 18,587 crore in 2024-25. This increase shows a CAGR (compound annual growth rate) of 114%.

 

– Advertisement –