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This allowed the “Collect request” or “bridge transaction” feature users to demand money from another person through the UPI platform. While this feature was originally designed for convenient use such as reminding friends of debt or dividing the bill, it has become a tool for fraudsters and other malicious people.
NPCI shut down payment request feature from 1 October
In an official circular issued on July 29, NPCI directed banks and payment apps to stop processing all P2P collecting transactions from 1 October. It is worth noting that these types of frauds have decreased in recent years, especially due to limiting the transaction value from NPCI to about ₹ 2,000. However, with completely removing this feature, NPCI aims to completely eliminate this type of fraud.
What will be the effect on Zomato, Amazon, and IRCTC bill payments?
Note that this change will not affect merchant transactions. Services like Flipkart, Amazon, Swiggy, and IRCTC will still be able to send a collect request to customers so that they can complete the purchase from their portals. These requests are a standard part of the request checkout process and requires user’s approval and UPI PIN to complete the payment, making it a safe and controlled transaction type.
NPCI has clarified that after the time limit of October 1, all member banks and UPI apps will not be allowed to start, root or process these P2P collecting transactions.
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