UPI to Retire Money Request Feature from October 1 to Tackle Fraud
For years, the money request option provided a simple way to ask friends or family for their share of expenses. Instead of awkward reminders, users could send a payment request through UPI, which the recipient could accept or reject. It was especially handy for splitting bills or settling small debts.
Why remove it?While convenient, the feature quickly turned into a playground for fraudsters. Scammers would send fake requests designed to confuse users into authorising payments, thinking they were confirming legitimate transactions. This loophole became one of the most exploited tricks in online fraud kits.
NPCI addressed the issue head-on in its latest directive: 'From October 2, no P2P collect transaction should be initiated, routed or processed.' Banks, payment service providers, and UPI apps have been instructed to block such requests entirely.
What stays the sameFortunately, the core of UPI remains untouched. Users can continue to:
Send money instantly via UPI ID, phone number, or bank details.
Pay through QR codes, whether to individuals or shopkeepers.
Approve collection requests from verified merchants such as e-commerce platforms or food delivery apps.
Merchant collection requests will also continue unaffected. In fact, unlike P2P requests (previously capped at ₹2,000 per request), merchant requests come with higher transaction limits, ensuring businesses can operate smoothly.
Balancing security with convenienceBy removing this single feature, NPCI aims to close a weak link in UPI's otherwise robust security chain. Fraudsters had to rely only on a careless tap by the victim, making scams alarmingly effective. NPCI explained the reasoning clearly: 'The objective is to protect consumers and strengthen trust in UPI.'
For genuine users, the change may bring mild inconvenience. Instead of sending a digital request, one will now need to directly share a UPI ID, generate a QR code, or send a friendly reminder over WhatsApp. It is a small adjustment compared to the larger goal of ensuring that every transaction on India's most popular payments system remains safe.
UPI's growing responsibilityUPI has transformed the way India handles money, facilitating billions of transactions every month with unmatched speed, simplicity, and zero transaction costs. But the very simplicity that fuels its popularity has also made it a target for fraudsters—who have tried everything from phishing links and fake OTPs to impersonating bank representatives.
The retirement of the money request tool is less about making UPI restrictive and more about making it resilient. By shutting down an exploited loophole, NPCI is reinforcing UPI's reputation as India's most trusted digital payments platform.
For users, the message is clear: a slightly less convenient experience, but one that prioritises safety above shortcuts.
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