Published on: August 14, 2025 08:37 AM IST
PhonePe, Google Pay, Paytm and other UPI app users will not be able to reach one of the most commonly used UPI features.
Do you often rely on the integrated payment interface (UPI) app like PhonePe, GPAY, and Paytm for online payment? Then, you may want to keep an eye on the rules of the new National Payment Corporation (NPCI) for UPI payment. Allegedly, NPCI will remove one of the most commonly used UPI features, which we call the Peer-to-Pier (P2P) transaction. This facility is widely used to send requests for money to the UPI account holder. Now, this feature will be removed from the UPI apps from October 1, 2025, so that user security can be strengthened and financial fraud can be reduced. Learn more about how the new UPI payment rules will affect users.
New UPI Payment Rules
In a circular date on 29 July, NPCI said that “until October 1, 2025, UPI P2P Collect will not be allowed to process in UPI.” This means that the “collected request” facility from banks and payment apps will be completely removed from the date mentioned. The P2P feature is widely used to send money requests to other UPI app users, which reminds them to share the amount or just divide a bill. However, this feature is being used by fraudsters to trick UPI users and empty their accounts.
Fraudsters often use this feature to send user requests in fake roles or pretense of false emergency. Once the user accepts the requests, they immediately start losing money, without realizing that they have fallen victim to a scam. Therefore, removing P2P feature will reduce these scam risks. Earlier, P2P transactions were limited 2,000 per transaction. This has helped reduce many fraud cases, yet it was not enough to stop them completely. Now, users will have to rely strictly on the QR code or select the contact number to send money using UPI PIN from 1 October.
Will it affect the merchant transaction?
Well, these new UPI payment rules will not affect merchant transactions including Flipkart, Amazon, Swigi and IRCTC. These platforms will be allowed to share collection requests to meet the payment. However, users will still have a fee, as they have to approve the request and enter their UPI PIN to meet the payment.
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