Big Change in UPI from 1st October: ‘Collect Request’ Service to be Discontinued, Digital Payments to be Safer

Why in Discussion ?

• The move by the National Payments Corporation of India (NPCI) is considered crucial to protect the UPI network from fraud.
• The ‘Collect Request’ facility has often been misused to trick users into making payments unknowingly.

• With this decision, users will initiate transactions themselves, increasing control and reducing the possibility of fraud.
• This change is significant from the perspective of digital payment security, trust, and transparency.

Key Headlines and Details:-

1. What is ‘Collect Request’?
   1. It is a UPI feature where a user can send a payment request to another user.
   2. Known as a pull transaction, this method has often been a cause of fraud.
   3. Currently, the limit per transaction is ₹2,000 with a maximum of 50 transactions per day.
2. What will change from 1st October 2025?
   1. All banks and UPI apps (PhonePe, Google Pay, Paytm) will completely discontinue P2P ‘Collect Request’.
   2. Only payer-initiated (Push) transactions will be valid.
   3. Users will need to scan QR codes or enter recipient details to make payments.
3. Why did NPCI take this step?
   1. To curb rising UPI fraud and misuse of Collect Requests.
   2. Despite the old cap (2019), fraud continued, making complete removal necessary.
   3. The industry has accepted it as a safe and reliable step.
4. Experts’ Opinions:
   1. Rahul Jain (CFO, NTT Data Payments India): “Removing this feature will make UPI safer and more trustworthy.”
   2. Riju Dutta (Co-founder, Cashfree Payments): “This change closes a long-exploited loophole and strengthens user trust.”
5. Broader Impact on Digital Payment Systems:
   1. Will enhance user security and trust.
   2. Supports integration of UPI with CBDC.
   3. Aligns with India’s goal of a safe, inclusive, and scalable fintech infrastructure globally.