Unified Payments Interface (UPI) has completely changed the way India transacts. From street vendors to large businesses, almost everyone in India relies on UPI for instant, seamless, and secure payments. Over the years, UPI has become the backbone of India’s fintech revolution, crossing billions of monthly transactions. But with rapid adoption also comes rising fraud, and one of the most exploited loopholes has been the “collect request” (pull) feature.
Recently, the National Payments Corporation of India (NPCI) announced that it is discontinuing the UPI collect request (pull transaction) feature to curb rising scams and ensure greater consumer safety. This move is expected to change the way both consumers and merchants interact with UPI. Let’s dive deep into what this ban means, why it’s happening, and how it will reshape India’s digital payment ecosystem.
What is the UPI ‘Pull’ Transaction Feature?
The UPI system works in two primary ways:
- Push Transaction – where the user actively sends money to someone by entering their UPI ID or scanning a QR code.
- Pull Transaction (Collect Request) – where the recipient sends a payment request to the payer, and the payer authorizes it.
For example, a small shop owner could send you a collect request of ₹500, and all you had to do was approve it on your UPI app. While convenient, this system was highly vulnerable to scams because many users unknowingly authorized fraudulent collect requests.
Why NPCI Banned the UPI Collect Request Feature
The ban comes after a surge in fraud cases linked to collect requests. Scammers often exploited less tech-savvy users by sending them fake collect requests with convincing reasons like:
- Fake refunds or cashback offers
- Posing as customer care executives
- Requesting urgent payments in disguise
Since many users confuse “approve request” with “receiving money,” they ended up losing funds instead. By removing this feature entirely, NPCI aims to shut down one of the most exploited fraud vectors in the UPI system.
Impact on UPI Users
For regular users, the ban is good news overall, but it also comes with some trade-offs:
🔸 Safer transactions – Users no longer risk accidentally authorizing fraudulent requests.
🔸 Simplified UPI flow – Only “push-based” transactions remain, reducing confusion.
🔸 Less flexibility – Genuine use cases, like splitting bills or merchants sending requests for payment, will now require manual input from the payer.
In short, it’s a small inconvenience for a big leap in safety.
Impact on Merchants & Businesses
Merchants and small businesses that relied on collect requests for convenience will be affected the most. For example:
- Restaurants that used to send payment requests will now have to rely entirely on QR codes or manual UPI IDs.
- Subscription-based services that auto-generated collect requests will need to migrate to AutoPay mandates or recurring payments.
This shift may initially be disruptive, but it also pushes businesses to adopt more standardized and safer payment collection methods.
How NPCI Plans to Balance Security with Convenience
NPCI isn’t just removing features—it is also enhancing UPI with better alternatives:
🔸 UPI AutoPay – For subscriptions and recurring payments, users can set up mandates, which are safer and transparent.
🔸 UPI Lite & Tap-and-Pay – For small-value transactions, instant debit without PIN entry offers faster and secure experiences.
🔸 Enhanced fraud detection – NPCI is working with banks and payment apps to tighten fraud analytics and user alerts.
By focusing on these alternatives, NPCI ensures that UPI continues to grow without compromising on trust.
What This Means for India’s Digital Payments Future
The UPI collect request ban is a proactive strike against fraudsters. While some convenience is lost, it strengthens the foundation of India’s digital economy. With over 10+ billion monthly UPI transactions expected soon, user trust is critical.
This decision highlights three major themes in India’s fintech journey:
- Security-first innovation – New features must prioritize safety over convenience.
- User education – As UPI expands, awareness about scams becomes as important as the technology itself.
- Global leadership – By preemptively curbing fraud, India sets a strong example for digital payment systems worldwide.
Final Verdict
The discontinuation of UPI collect requests (pull transactions) might frustrate some users and businesses in the short term, but it’s a necessary move to strengthen India’s most trusted payment system. By eliminating a scam-prone feature, NPCI ensures that UPI continues to thrive as the safest and most inclusive digital payment rail in the world.
If you’re a user—don’t worry. QR codes, UPI IDs, and AutoPay will handle all your payment needs without compromise. If you’re a business—adapt quickly, because the future of UPI is safer, faster, and more fraud-proof than ever.
