NPCI’s New UPI P2P Regulations: What You Need to Know

New UPI Payment Regulations to Combat Fraud

Do you frequently make payments online using Unified Payments Interface (UPI) apps like Paytm, GPay, and PhonePe? If so, you should monitor the National Payments Corporation of India’s (NPCI) new UPI payment regulations.

Peer-to-peer (P2P) transactions, one of the most popular UPI features, will be eliminated by NPCI, according to news reports. Sending money to another UPI account holder is a popular usage for this functionality. Now, beginning October 1, 2025, this capability will be eliminated from UPI apps in an effort to improve user security and lower financial fraud.

Let’s examine how users will be impacted by these new UPI payment regulations.

New Guidelines for UPI Payments to Prevent Fraud

Here is everything you need to know about the new UPI payment regulations that the NPCI released in an effort to combat fraud:

According to NPCI’s July 29 circular, “by October 1, 2025, UPI P2P collect will not be allowed to be processed in UPI.” This implies that starting on that date, banks and payment apps will no longer have the “collect request” feature.

To remind other UPI users to divide a bill or share an amount, the P2P capability is frequently used to send money requests. This same functionality, nevertheless, has been used by scammers to defraud UPI users and empty their accounts.

This function is frequently used by scammers to send fictitious requests masquerading as a false emergency or a fraudulent role. The moment a person agrees to the request, they begin losing money without even realizing they have been duped. The likelihood of these scams will decrease if the P2P feature is removed.

P2P transactions were previously restricted to ₹2,000 per, which reduced the number of fraud incidents, but it wasn’t sufficient to totally prevent them. As of October 1, users will no longer be able to send money using their UPI PIN without either choosing a contact number or scanning a QR code.

The Impact of This on Merchant Transactions

Transactions made by merchants on websites like Flipkart, Amazon, Swiggy, and IRCTC would not be impacted by the new UPI payment regulations. To finish a payment, these platforms will still be able to communicate a collect request. Users will still need to act, though, as in order to finish the payment, they must accept the request and input their UPI PIN.

Do you have any further questions concerning digital payments in general or the new UPI regulations?

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