Annexure – IV Unified Payment Interface (UPI) in ASBA

Definition: Unified Payment Interface (UPI) is a system that powers multiple bank accounts into a single mobile application, allowing seamless fund transfers and merchant payments.
Details: UPI can be used as a payment mechanism for investing in IPOs, providing a convenient and efficient way to apply for public issues.

Key Concepts for UPI in ASBA

Bidding through UPI: Investors fill in bid details in the application form along with their UPI ID, which is then uploaded to the stock exchange bidding platform.
Blocking of funds: The Escrow/Sponsor bank requests the investor to authorize blocking of funds equivalent to the applicant amount, which is then validated by the investor.
Payment for shares: After share allocation, the process of debiting funds from the investor's account takes place, and excess money is unblocked based on the authorization given by the investor using their UPI PIN.

Create a UPI ID with a bank mentioned in the 'List of Self-Certified Syndicate Banks (SCSBs)' on the SEBI website.
Use only authorized mobile applications and UPI handles listed on the SEBI website.
Submit application forms with UPI as a payment mechanism only to a Syndicate Member, Registered Stock Broker, Registrar and Transfer Agent, or Depository Participant.
The limit for IPO application is Rs. 2 Lakhs per transaction on UPI, available only for retail individual investors.
Third-party UPI IDs or investors using a third-party bank account will not be considered for allocation.