Every P2P platform's terms include a strict ban on third-party payments. Both sides — buyer and seller — agree that the INR will move only between their own bank/UPI accounts. Violation is grounds for immediate suspension.
What counts as third-party
Buyer paying from a friend's UPI account, seller asking buyer to send to a different person's account, paying via someone else's wallet — all third-party. The rule is binary: name on the originating account must match the name on the trader's KYC.
Why it's banned
Third-party payments are the textbook layering pattern in money laundering. AML systems are tuned to detect them; flagging from your bank's side, the receiving bank's side, or the platform's side is automatic.
If your KYC name is X but the UPI is from Y, the trade is legally voidable and the platform must report it. You'll be banned, the merchant gets caught in the dispute, and both sides take losses.
Edge cases
Joint account holders: technically allowed if the joint account is linked to the KYC, but most platforms disallow even this for simplicity. Use the primary account.
Family-member accounts: not allowed, regardless of relationship. The KYC name must match.
Key takeaways
- Third-party payments = different name on UPI from trader's KYC.
- Banned by every major platform; flagged by every major bank.
- Edge cases (joint accounts, family) — usually still disallowed.
- Easiest rule: only ever use accounts in your own name.
