UPI Rule Change From October 1: PhonePe, GPay & Paytm Users To Lose This Payment Feature

The National Payments Corporation of India (NPCI) has announced a significant change in UPI payment rules, set to take effect from October 1, 2025, that will impact millions of PhonePe, Google Pay (GPay), and Paytm users. In a bid to strengthen digital payment security and minimise fraud risks, NPCI will completely disable person-to-person (P2P) collect requests on the UPI platform.

For years, the collect request feature also known as a pull transaction has allowed users to send a payment request to another individual. It was designed for convenience in scenarios like splitting bills, reminding friends about pending payments, or collecting dues without the sender having to initiate the payment themselves. However, over time, fraudsters have misused this option to deceive users into approving payments unknowingly.

How fraudsters exploit collect requests

Cybercriminals often send fake payment requests, pretending to be legitimate businesses, employers, or acquaintances. Unsuspecting users, thinking they are receiving money, end up authorising the transaction and instantly transferring funds to the fraudster’s account. Even though NPCI previously limited these transactions to ₹2,000 to reduce scams, some incidents have still been reported.

NPCI’s official directive

In a circular issued on July 29, 2025, NPCI instructed all banks and UPI apps to stop processing P2P collect requests from October 1 onwards. After this date, the only way to send or receive money via UPI will be by scanning a QR code or selecting a contact and entering the UPI PIN.

Impact on online services like Zomato, Amazon, and IRCTC

The change will not affect merchant payments. Platforms like Amazon, Flipkart, Swiggy, Zomato, and IRCTC will still be able to send collect requests to customers as part of their secure checkout process. These transactions require the customer’s explicit approval and UPI PIN entry, making them safer and regulated under NPCI guidelines.

What users should do now

Users are advised to update their UPI apps regularly, stay vigilant while authorising transactions, and avoid approving unknown payment requests. This step from NPCI aims to completely eliminate a known fraud pathway and make UPI transactions even more secure for the growing digital payments ecosystem in India.

From October 1, 2025, if you receive a request to send money via UPI from an unknown person, remember it’s no longer a standard feature, and it’s best to report such attempts immediately.