Tag: fintech

Business

UPI Alert: P2P ‘Collect Request’ Feature to Be Discontinued from October 1, 2025

Tanisha Cardozo

If you frequently use apps like PhonePe, Google Pay, or Paytm for sending or receiving money, there’s a major update you need to be aware of.

In a circular dated July 29, the National Payments Corporation of India (NPCI) has announced that the P2P “Collect Request” feature on UPI platforms will be discontinued from October 1, 2025.

What Is the P2P Collect Request Feature?

This feature allows UPI users to send a payment request to another user, often used to remind friends or family to share bills or pending payments. However, it has become a significant vector for scams and phishing attempts.

Fraudsters commonly use this to trick users into accepting fake requests under the pretense of emergencies or professional roles, leading to unauthorized debits from the victim’s account.

Why Is It Being Removed?

Despite a ₹2,000 limit per transaction, fraud cases have continued. NPCI has decided to remove the feature entirely for P2P payments to improve user safety.

From October 1, 2025, you’ll only be able to send money via:

✅ QR code scanning
✅ Selecting the contact number manually
✅ Entering the UPI PIN for authorization

Will Merchant Transactions Be Affected?

No. UPI collect requests from verified merchants like Flipkart, Amazon, Swiggy, and IRCTC will remain unaffected.
Users will still have to approve the request and enter their UPI PIN to complete the transaction, maintaining security protocols.

Key Takeaways for Users:

  • ❌ P2P UPI collect requests will stop from October 1, 2025
  • ✅ Continue using QR codes and contact-based UPI transfers
  • 🔒 The move aims to significantly reduce fraud risks
  • 🛍️ Merchant transactions will still function normally
Business

ICICI Bank to Begin Charging UPI Fees for Payment Aggregators from August 1, 2025

allycaralgoa

In a move that could significantly reshape India’s digital payments landscape, ICICI Bank has announced it will introduce fees for payment aggregators on UPI (Unified Payments Interface) transactions, starting August 1, 2025.

This means that platforms acting as intermediaries—such as payment gateways and digital wallets—will now incur charges for processing UPI transactions through ICICI Bank infrastructure. While the bank has yet to publicly disclose the fee structure, the development is seen as a pivotal moment for India’s highly active and fast-growing digital payment ecosystem.

Why It Matters
India’s UPI system, developed by NPCI (National Payments Corporation of India), has so far offered zero-fee transactions to consumers and merchants, with banks and aggregators absorbing operational costs. However, with the sharp increase in transaction volumes and rising infrastructure costs, banks have long debated the need to monetize backend UPI services.

Implications for Fintech & Merchants
Payment aggregators like Razorpay, Paytm, PhonePe, and others may now need to adjust pricing models or absorb the costs, potentially affecting small businesses and merchants who rely on low-cost digital payment solutions.

Analysts say this move might also trigger a trend where other banks follow suit, bringing the long-standing debate on UPI monetization into the spotlight.

Consumer Impact
As of now, the fee is expected to apply only to payment aggregators, not end consumers. However, if aggregators pass on the costs, small transaction-based fees could become the norm in some segments.

Looking Ahead
This decision comes amid broader discussions by the Reserve Bank of India and NPCI about the sustainability of India’s digital payments infrastructure. ICICI Bank’s move will likely influence policy direction and business strategies in the months ahead.

Stay tuned to Allycaral for updates on how this change evolves and what it means for consumers, fintech platforms, and the Indian economy.

Finance

Axis Trustee Unveils “AVA” – India’s First AI-Powered Chatbot for Trustee Services

allycaralgoa

Mumbai, July 23, 2025 – In a groundbreaking move, Axis Trustee Services Ltd., a wholly-owned subsidiary of Axis Bank, has launched AVA (Axis Trustee Virtual Assistant) — the first AI-powered chatbot in India’s trustee services space.

This innovation marks a significant leap in Axis Trustee’s journey toward digital empowerment and seamless customer experience. AVA will provide real-time support, service request management, and instant responses to process and transaction-related queries—redefining how clients interact with fiduciary service providers.

AVA is built on three powerful pillars:

  • 24/7 Client Support on products and services
  • Streamlined Service Requests with trackable resolutions
  • Expert Guidance on complex compliance, transactions & documentation

“AVA reflects our promise to be a responsive, technology-driven trustee partner,” said Mr. Rahul Choudhary, MD & CEO, Axis Trustee Services. “It’s more than a chatbot—it’s our commitment to trust, innovation, and customer-first service.”

Axis Trustee has long been a pioneer in the trustee sector, investing in digital documentation, workflow automation, and now artificial intelligence. The addition of AVA reinforces the company’s mission to offer transparent, efficient, and future-ready trustee solutions.

Human Interest

India Post Embraces Digital Payments: UPI Now Accepted at Post Office Counters Nationwide from August 2025

allycaralgoa

In a significant step toward advancing financial and digital inclusion, the Government of India has announced that all post office counters across the country will begin accepting UPI payments starting August 2025. The move is expected to enhance customer convenience, reduce dependency on cash, and integrate more citizens into the digital economy — especially in rural and underserved regions.

A Digital Leap for India Post

India Post, with its vast network of over 1.5 lakh post offices, is one of the largest and most trusted public service institutions in the country. While many urban and semi-urban branches have already adopted basic digital services, this step takes things a notch higher by integrating the country’s most popular digital payment platform — Unified Payments Interface (UPI).

With this initiative:

  • Customers can make instant payments for postal services like speed post, parcel booking, savings deposits, and more using their UPI apps.
  • Rural post offices will be digitally empowered, making it easier for people in remote areas to transact without needing cash.
  • It brings transparency and efficiency to payment processes at government service counters.

Key Benefits:

  • Cashless Transactions: No need to carry cash for basic postal services.
  • Speed & Convenience: Faster checkouts at counters.
  • Financial Inclusion: Rural India gets access to modern payment infrastructure.
  • Safety & Hygiene: Reduces physical contact in cash exchanges.

Implementation Details

The rollout is expected to begin in phases starting August 2025, with full implementation targeted by the end of the year. Post office staff are undergoing training to assist users with UPI payments, and signage and QR codes will be prominently displayed at every counter.

Government’s Vision

This initiative is part of the Digital India mission, which aims to connect every Indian with digital tools and services. With India witnessing over 10 billion UPI transactions monthly, extending the service to post offices is a logical and impactful next step.

What’s Next?

Customers visiting post offices for services like:

  • Mail and courier
  • Bill payments
  • Small savings deposits (like RD, NSC, MIS)
  • Aadhaar-linked services

…will be able to scan a QR code and pay using their preferred UPI app — be it Google Pay, PhonePe, Paytm, BHIM, or any other.

Business

India and Cyprus Sign MoU to Launch Unified Payments Interface (UPI) Services in Cyprus

allycaralgoa

New Delhi/Nicosia | June 2025 — In a landmark development aimed at enhancing digital connectivity and financial inclusion, India and Cyprus have signed a Memorandum of Understanding (MoU) to enable the introduction of India’s Unified Payments Interface (UPI) in Cyprus. This agreement marks another significant step in the global expansion of UPI and further deepens the growing bilateral partnership between the two countries.

A Digital Bridge Across Borders

The MoU was signed between India’s National Payments Corporation of India (NPCI) International and the Central Bank of Cyprus, with representatives from both governments present. This collaboration will allow Indian tourists, businesses, and residents in Cyprus to seamlessly access UPI-based mobile payment services. The initiative also opens up new avenues for Cypriot citizens and businesses to engage in fast, secure, and cost-effective digital transactions using a world-class payment infrastructure.

Key Benefits and Strategic Importance

  • 📲 Real-Time Payments: UPI enables instant money transfers between bank accounts using mobile apps, eliminating the need for complex banking details.
  • 🌐 Boost for Cross-Border Transactions: Indian travelers, students, and businesses in Cyprus can make payments without foreign transaction fees or delays.
  • 💼 Support for MSMEs & Tourism: Cyprus-based vendors and service providers gain access to a wider base of digital-first Indian consumers.
  • 🇮🇳🤝🇨🇾 Bilateral Cooperation: Strengthens India–Cyprus economic and technological relations, particularly in fintech innovation and digital governance.

UPI’s Expanding Global Footprint

India’s UPI platform has emerged as a global model for real-time payments. With this agreement, Cyprus joins a growing list of countries—including Singapore, UAE, France, and Sri Lanka—that have adopted or are integrating UPI into their domestic financial systems.

A senior official from NPCI International stated:

“The expansion of UPI to Cyprus reflects India’s commitment to building global digital public infrastructure and advancing inclusive financial ecosystems worldwide.”

Cyprus: A Strategic Gateway

Cyprus, a member of the European Union and a popular destination for Indian students and businesses, is poised to benefit from the seamless integration of UPI. The partnership also underscores the potential of using digital finance to enhance remittances, tourism services, and cross-border B2B payments between India and Europe.

Looking Ahead

With technical integration and regulatory groundwork now underway, UPI-based services are expected to be rolled out in Cyprus over the coming months. This collaboration not only enables frictionless payments but also sets the stage for future innovations in digital finance between India and the EU region.