The Unified Payments Interface (UPI) has transformed daily financial transactions in India, offering unparalleled speed, ease, and accessibility. From street vendors to online subscriptions, millions rely on UPI apps for seamless payments. However, recent debated explored a critical debate: Are certain UPI features a true convenience, or have they become a menace due to rising fraudulent activities? The conversation highlighted alarming trends in misuse, particularly involving two key features — Autopay and Collect requests.

Autopay allows recurring payments for bills, EMIs, or subscriptions, while Collect requests enable the receiver (often a merchant) to initiate a payment demand, which the payer must approve. Experts noted that these tools, designed for user ease, have been exploited in scams, leading to unintended debits and financial losses, especially among vulnerable groups such as the elderly, rural users, and those with lower financial literacy.

NPCI (National Payments Corporation of India), the body overseeing UPI guidelines, has expressed serious concern over the surge in such incidents. Sources indicate that NPCI is actively addressing these issues, including plans to selectively phase out or restrict Collect requests in high-risk categories (such as person-to-person merchant or P2PM transactions) and to enforce stricter display guidelines for Autopay features. These steps aim to ensure users clearly understand and consent to recurring payments, particularly in subscription-based entertainment and online apps. The goal is to prevent hidden or deceptive recurring charges without fully dismantling the functionality that has driven UPI's explosive growth.

A fintech adviser and former RBI committee member, emphasized that UPI features were created for customer convenience but require constant awareness-building. He pointed out how fraudsters often trick users into entering their PIN under the guise of receiving money via Collect requests, leading to unauthorized debits. He advocated for a balanced approach: retain convenience while prioritizing education and caution.  Co-founder of a credit card based app echoed this view from an industry perspective, noting that UPI has accelerated financial inclusion and digital payments. He stressed the industry's responsibility to enhance literacy, follow evolving regulations, and introduce stronger security measures over time.

From a macroeconomic standpoint, another former RBI official, described UPI as the world's largest inclusive retail payment system. She highlighted its role in eliminating the need for cash in everyday transactions, but warned that frauds — especially targeting financially illiterate users — could erode trust. Joshi underscored the RBI's vision of secure, fast, and accessible e-payments, while noting the need for better digital literacy and robust dispute resolution.

A top office bearer of a local governance based NGO shared stark data from surveys: One in five Indian families using UPI had faced fraud in recent years, with many incidents linked to Collect requests (often disguised as incoming credits). He supported restrictions on Collect as a proactive measure, while calling for greater consumer protection against "dark patterns" in Autopay sign-ups, where cancellation is deliberately difficult.

An executive of a management and financial consulting firm assessed the business impact. He argued that the proposed curbs on P2P Collect requests would have minimal effect on listed payment aggregators (like Paytm, MobiKwik, and Pine Labs), as these features are not major revenue drivers. Instead, he viewed the changes as positive for trust-building and regulatory optics, with users potentially shifting to safer alternatives like QR code payments.

Overall, the experts converged on a key consensus: UPI remains fundamentally a convenience that has revolutionized financial inclusion in India. The proposed regulatory tweaks — stricter Autopay transparency and targeted restrictions on Collect requests — are seen as essential safeguards rather than disruptions. These measures aim to close loopholes exploited by fraudsters, restore user confidence, and protect vulnerable segments without undermining the system's core strengths.

As UPI continues to expand internationally and integrate deeper into everyday life, the discussion serves as a timely reminder: Innovation thrives when paired with awareness, vigilance, and proactive regulation. Users are encouraged to regularly review Autopay mandates, be cautious with unexpected payment requests, and report suspicious activity promptly. With these steps, UPI can remain both a powerful convenience and a secure lifeline for millions.