In today’s time, UPI is used widely to transfer and collect funds from each other. Whether making bills or shopping payments, UPI is very beneficial for all people.
You don’t have to be physically present outside a bank or fill a cheque to make payment because, through UPI, you can do it using a smartphone anytime, no matter wherever you are.
Earlier, the method of applying for IPO through UPI was time-consuming. You were told to invest in IPO by using ASBA (Application Supported by Blocked Amount) or by visiting the bank and submitting the physical application for applying in IPO.
Now, the Security Exchange Board of Directors (SEBI) has made mandatory UPI for all the applications through registered stockbrokers, RTA’s (Registrar and transfer agents), DPS (depository participants).
While UPI is fast and can be used for several purposes, this article will give you step-by-step detail on How to apply for IPO through UPI.
UPI (Union Payment Interface) is a payment system that instantly transfers funds from one bank account to another bank account.
UPI was developed by the National Payments Corporation of India (NPCI), allowing several banks to interconnect and transfer funds under one umbrella. You can transfer money anytime and anywhere as it works on a 24x7 basis. To send and receive money, all you need is UPI ID and PIN to get started.
The UPI has a highly secure encryption format that keeps all the important transactions safe and secure. Several apps support UPI like BHIM, Google Pay, and Paytm to verify with their bank account to generate information before making any transaction.
To apply for an IPO using UPI ID, you have to follow the steps given below:
UPI (Union Payment Interface) is a payment system that instantly transfers funds from one bank account to another bank account.
Yes, you can apply for IPO through Paytm with your broker by providing your Paytm UPI (Union Payment Interface) ID. As SEBI has approved Paytm for fast payments for IPO application
The UPI was introduced by the Security Exchange Board of Directors (SEBI) in 2019 and made it compulsory for all the applicants who subscribe for an IPO.
li>Who developed UPI?UPI was developed by the National Payments Corporation of India (NPCI), allowing several banks to interconnect and transfer funds under one umbrella.
li>Is subscribing to IPO through UPI fast?Yes, subscribing for IPO through UPI fast because it allows applicants to connect with the bank linked to Demat and trading account and gives UPI ID to buy shares for an IPO.
Final Thoughts
In 2019, SEBI introduced the facility to invest in IPO through UPI ID. The instant payment transfer and easy-to-use interface made UPI an essential option that serves various purposes.
The process of subscribing to IPO through UPI is convenient and straightforward, making it easy for all applicants. All they have to need is a smartphone and a reliable UPI app.
However, SEBI has made it compulsory to offer UPI to all the applicants looking to subscribe for an IPO. Thus, the addition of UPI in the IPO has improved public offerings.