UPI Scam Alert – What NPCI’s Oct 1 ‘Collect Request’ Shutdown Means for Crypto Users

India’s digital payment ecosystem is entering a new phase of security. To address the rising tide of UPI fraud 2025, the National Payments Corporation of India (NPCI) has announced that all P2P ‘collect requests’ on UPI will be discontinued from October 1, 2025.

This shift has broad implications, especially for individuals engaged in digital finance, including those using crypto-related platforms for peer-to-peer transfers. 

With NPCI collect request features being phased out, users will now need to rely solely on payer-initiated transactions, reducing risks but also reshaping how people interact with digital payments.

What Are UPI Collect Requests?

A collect request is a “pull” transaction where one user sends a request for money and another approves it. For years, this feature was seen as a convenience tool but became a loophole for scammers.

• Fraudsters would send misleading requests, tricking users into authorizing payments.

• Even with transaction caps (₹2,000 per request and 50 per day), india crypto scam incidents exploited this function.

• NPCI’s ban ensures all transactions are now “push-based,” meaning the payer must scan a QR code or initiate payment directly.

Read Also: 8 Best and Potential Crypto Projects in India

Why NPCI Took This Step

The move comes after consistent reports of UPI fraud despite earlier restrictions. By removing the collect request option:

• Security improves: Only payer-initiated transactions are allowed.

• Transparency increases: Users know exactly when and why they’re sending money.

• Crypto-related scams reduce: Since many fraudsters misused collect requests to target inexperienced digital asset users, eliminating the feature enhances UPI safety in crypto transactions.

Impact on Crypto Users in India

The intersection of UPI and cryptocurrency often makes users more vulnerable to scams. Here’s what changes after October 1:

• Safer P2P trades – Crypto users sending or receiving funds linked to virtual asset deals will need to scan a QR code or initiate payment themselves.

• Reduced phishing risk – No more unexpected “pull requests” disguised as legitimate crypto trades.

• Extra verification needed – While safer, it also places more responsibility on users to ensure they’re sending money to trusted parties.

In short, the shutdown strengthens the trust layer for anyone transacting in digital assets within India’s regulated UPI system.

Read Also: How to Buy Indian Call Center (ICC)

How Users Can Stay Safe Post-October 1

Even with this major change, users should continue practicing caution:

• Double-check recipient details before scanning any QR code.

• Never share UPI PINs or authorization details.

• Use only official apps from verified banks or payment providers.

• Stay updated on upi safety advisories issued by NPCI.

Conclusion

NPCI’s decision to discontinue collect requests from October 1, 2025, is a decisive move to curb UPI fraud 2025. 

While it limits one mode of transaction, it significantly boosts security and reduces loopholes exploited in india crypto scam cases. 

For crypto users, this ensures greater safety and control, marking a step forward in building a more resilient digital economy.

For more in-depth crypto market updates and predictions, check out the latest posts on the Bitrue blog, or explore trading directly on Bitrue’s platform.

Read Also: Where to Buy Crypto in India in 2025

FAQ

What is a UPI collect request? 

It’s a “pull” feature where one user requests money from another, who approves the payment.

Why did NPCI ban collect requests?

Because they were widely misused in frauds and scams, despite caps on limits.

How does this impact crypto users?

It reduces scam risks, ensuring only user-initiated (push) transactions are possible.

Is UPI still safe after October 1, 2025?

Yes. In fact, security improves because all payments will be payer-initiated.

What should I do to stay safe on UPI?

Always initiate payments yourself, verify recipients, and never approve unknown requests.