The collect transaction feature enabled the UPI 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, and third-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 collect transaction is initiated, routed or processed beyond Oct 2, 2025,” reads the circular.
Signed by Kunal Kalawatia, chief of products, the latest instructions will come into force with effect from October 1.
The latest circular dated 29 July 2025 also recalls users that NPCI has earlier imposed limits on UPI Collect transactions based on their types.
Although verified merchants were permitted to generate collect requests for a higher amount, P2P collect requests could be made under a limit of ₹2,000, per the NPCI’s circular dated 31 October 2019.
Fee from payment aggregators
In other news, ICICI Bank started charging payment aggregators (PAs) a fee for handling Unified Payments Interface (UPI) transactions that these PAs facilitate on merchant platforms w.e.f. Aug 1.
PAs include Google Pay, PhonePe, Mobikwik, and Razorpay, among others.
The bank has reportedly sent letters to payment aggregators intimating them of this decision. Quoting a source familiar with the development.
UPI for tourists
In other news, Smart Payment Solutions, an RBI-regulated entity, launched Mony, a UPI-based mobile app that enables tourists and non-resident Indians (NRIs) to make payments across the country without requiring an Indian bank account.
Built on India’s UPI and part of the UPI One World initiative, the Mony app will let foreign nationals pay for goods and services by scanning QR codes at local shops, restaurants, and retail stores. The service is designed to reduce the challenges faced by international visitors who often find it difficult to access India’s fast-growing digital economy.
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