New Delhi, Aug. 14 -- From October 1, 2025, the National Payments Corporation of India (NPCI) has banned UPI peer-to-peer (P2P) Collect transactions.

The collect transaction feature enabled theUPI users to seek money from other individuals via UPI. Earlier meant to introduce convenience, for example, to remind friends about due repayments or splitting bills, this has lately been often abused by fraudsters, and hence it is set to be discontinued.

In its latest circular, NPCI has issued instructions to all UPI member banks, PSPs, andthird-party app providers.

"All member banks, payment service providers (PSPs) and UPI apps are directed to implement the necessary changes in their systems and operational processes to ensure that no P2P col...