New Delhi: The National Payments Corporation of India (NPCI) has revised its Unified Payments Interface (UPI) framework, discontinuing international QR-based payments and enforcing new limits on domestic transactions.
This announcement came last week amid daily UPI users in India reporting issues with Google Pay, Paytm and other platforms, marking the third outage in a month.
International QR Code Payments Discontinued
In a significant move, NPCI has ended the use of “QR share and pay” for international transactions. Indian users abroad, including Non-Resident Indians (NRIs), can no longer scan merchant QR codes received via messaging apps or social media to complete payments.
The change is aimed at enhancing compliance and addressing security concerns in cross-border UPI transactions. NPCI officials cited increasing risks of misuse and lack of traceability in QR-based international payments as key reasons behind the move. The decision is likely to affect NRIs and users who rely on this method for remote payments to India-based merchants.
Domestic Cap on QR Code Payments to Unverified Merchants
Domestically, the NPCI has introduced a Rs 2,000 cap on “QR share and pay” transactions made to merchants who are not verified or registered with the NPCI. This change targets informal merchant setups that often operate without standard digital verification protocols.
The new limit aims to reduce consumer risk and curb potential fraud in peer-to-merchant (P2M) transactions. It also signals a broader push to formalize UPI usage among small and unregistered merchants.
Wallet Reload Rules Tightened
NPCI has also barred the use of “collect requests” — where merchants or platforms request funds for loading prepaid wallets and gift cards. Going forward, users will need to initiate these transactions themselves via “push requests.”
The move addresses vulnerabilities in the collect request system, which has been exploited in several reported fraud cases. By shifting control to the user, NPCI aims to reduce the chances of unauthorized deductions or scam-based requests.
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