UPI New Rules from October 1: PhonePe, Google Pay, Paytm Users Must Know
Digital payments have become the most convenient and fast method of today’s time. We all have become heavily dependent on Unified Payments Interface (UPI) apps like PhonePe, Google Pay (GPay) and Paytm in our daily lives. Be it a small payment or a big online shopping transaction, UPI has made our life simple and cashless. But now a big update has come which will directly affect millions of UPI users. National Payments Corporation of India (NPCI) has announced UPI New Rules payment rules which will come into effect from 1 October 2025, and after this a popular feature will be closed forever.
UPI New Rules to Stop P2P Collect Requests
NPCI confirmed in its July 29 circular that UPI P2P Collect requests will be discontinued from October 1, 2025. Meaning, you will not be able to use the option to send money requests to any friend or relative on any UPI app. This feature, with which people used to split bills or send reminders, is now going to become history.
There is a solid reason behind this rule – to stop scams and frauds. Many fraudsters had created a way to loot money from innocent people by misusing this feature. Cases of money being withdrawn from users by making them enter their UPI PIN through fake emergencies, false roles and misleading requests were increasing rapidly. NPCI says that now payments will have to be made only by selecting QR code or contact, which is comparatively safer.
NPCI Removing UPI Pull Transactions for Safety
You must be wondering what is this P2P Collect request or pull transaction? In simple words, when the recipient i.e. the one requesting money initiates the transaction himself and the sender just enters the UPI PIN and approves, then it is called a pull transaction.
Unfortunately, this method is misused the most by fraudsters. In many cases, scammers would send a collect request by posing as a seller or service provider. The victim thought he would receive the payment, but actually he would send his money to the scammer. According to NPCI, this feature was only 3% of the total UPI transactions, so discontinuing it is a comparatively easy decision.
UPI Fraud Prevention: Why This Step Matters
In today’s digital era, these fraudsters misuse every possible loophole. UPI collect request had become an easy trap for them. Scammers would send a collect request in the name of online sale, refund or fake merchant and users would enter the PIN without checking the details. All the money would be withdrawn in a quick second.
For this reason, NPCI had previously put a limit of ₹2,000 on this feature. But even then the frauds could not be stopped. Now by completely closing it down, a big fraud chain will be stopped and the UPI ecosystem will become more secure.
Will UPI New Rules Affect Merchant Transactions?
Now an important question — will these new UPI payment rules also affect merchant apps like Flipkart, Amazon, Swiggy, IRCTC? The answer is NO. It will have no impact on merchant transactions. The collect request feature will continue on these apps, as it is considered safe for genuine and verified businesses.
Yes, users will still have to approve every transaction and enter the UPI PIN. Meaning you have to be alert from your side whether the request is authentic or fake.
UPI Collect Request Ban Starting October 1
After October 1, a new digital payment era will begin. Peer-to-peer collect requests, which were once an easy way to split bills with friends or ask for money, will now be stopped. But this does not mean that you will not be able to send money to your friends through UPI. You can still send money easily by scanning their QR or directly selecting their UPI ID.
This may seem like a slightly inconvenient change, but it is necessary for safety. In today’s fast-paced digital world, even a small mistake can put you in a big financial loss. This step of NPCI is a reminder that along with digital convenience, awareness and safety are equally important.
UPI Safety Tips for Users – UPI New Rules
After the introduction of this new rule, you will have to be a little extra cautious in your digital payments. Never approve a payment request coming from an unknown source. UPI PIN is used only for sending money, never for receiving it. And always check the transaction details carefully, whether it is a merchant request or a friend’s QR code payment.
Conclusion
NPCI’s decision to make UPI Collect Request is a big step towards making digital payments more secure. Although it may seem a bit inconvenient, it is necessary to avoid the traps of fraudsters. New rules of UPI are starting from October 1, 2025, and every user will have to be aware of it. The future of digital payments will be safe only when we all remain cautious from our side.
Disclaimer:
This article is for informational purpose only. The details given in it are based on official NPCI circulars and media reports. Before taking any financial decision or using UPI app, it is important to confirm with your bank or NPCI’s official website.
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