UPI Peer-to-Peer Money Requests Halted to Combat Fraud

However, merchants such as e-commerce giants Flipkart, Amazon, and food delivery services like Swiggy will continue to use UPI for collecting payments from customers.

The decision stems from rising concerns over fraudulent activities, where scammers exploit unsolicited requests to trick users into transferring funds. NPCI officials stated that this will safeguard users from phishing and unauthorized demands, fostering a safer digital ecosystem. "We've seen a spike in complaints about fake requests leading to losses," an NPCI spokesperson noted.

For everyday users, this means relying on alternative methods like sharing payment links or using direct transfers. Businesses, unaffected by the ban, can still leverage UPI's efficiency for seamless operations. Experts predict this could push more people towards other fintech tools, but it might inconvenience split bills at dinners or group expenses.

Consumer advocates praise the move for enhancing security, though some argue it limits UPI's convenience. As India leads in digital payments with over 300 million UPI users, this change underscores the balance between innovation and protection against cyber threats.