UPI is now a payment option for IPO applications

Unified Payments Interface (UPI) added another feather to its cap when NPCI in association with Securities and Exchange Board of India (SEBI), rolled out UPI as an alternative payment option for buying shares in a public issue (IPO).
The first IPO with UPI as a payment option was opened on 24th January, 2019 with M/s. Xelpmoc Design and Tech. This was followed by another IPO of M/s. Chalet Hotels on 30th January, 2019. The new process shall increase efficiency, eliminate the need for manual intervention at various stages, and reduce the time duration from issue closure to listing by up to 3 working days (from the existing timeline of 6 days).

Some of the immediate benefits that UPI shall provide to the public issue listing process are:

• It reduces the time from closure of bidding to the listing to 3 days from the existing 6 days.
• The UPI 2.0 mandate feature of One time blocking shall ensure that the amount remains Blocked (and not debited) in the customer’s account till allotment is done, as is currently happening in the ASBA process.
• Reduces the need for manual intervention and logistics at various stages of the IPO process.

UPI payment process in IPO explained