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The Unified Payment Interface (UPI) is a simpler, easier and convenient payment method for IPOs.
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Investors can apply for an IPO via UPI either online or offline. The online UPI IPO application process is much simpler, easier and convenient compared to the offline IPO application using UPI. An UPI ID is mandatory to apply for an IPO using the UPI route. In the offline IPO application, investors need to get the IPO application form, fill all the details manually and then submit the form. On the other hand, an online IPO application is just a few clicks.
On November 1, 2018, SEBI announced the launch of the Unified Payment Interface (UPI) as a new payment method for IPOs. The UPI based IPO application process is very convenient and simple. It only takes a few minutes to pay for an IPO application via UPI and submit IPO bids online.
UPI IPO means applying for an IPO through the UPI payment gateway. UPI stands for Unified Payments Interface. It is an instant payment system developed by the National Payment Corporation of India (NPCI) (an RBI-regulated entity) through which investors can transfer money from one bank to another instantly or in real time. It is similar to IMPS (Immediate Payment Service) fund transfer. To apply for an IPO, investors should have a UPI ID.
NPCI has partnered with several banks and digital wallet platforms that allow IPO applications through UPI. Some of the UPI handles are only supported on Android, while others work on both Android and iOS systems. For details, see the list of IPO UPI Apps.
The UPI IPO process is a step towards digitizing the entire IPO process with the aim of increasing efficiency and reducing the listing timeline for public issues.
Investors can apply for an IPO online using their UPI ID anytime and anywhere through their broker, provided the broker offers an online IPO application facility.
Online IPO Application Process Through UPI:
To apply for an IPO offline using UPI ID, investors need to fill in the UPI ID under the payment option in the IPO application form. Regardless of whether the application is submitted online or offline, approval of the UPI mandate is mandatory to complete the application process.
Offline IPO application process through UPI:
Procure the IPO application form from the nearest broker/bank branch. OR Download the form from the exchange website (NSE/BSE).
The IPO application through UPI requires individual investors to have a UPI ID.
A UPI ID is a user's unique virtual payment address (VPA), similar to an email address. The UPI ID for IPO application can be created by registering with one of the UPI-enabled mobile applications (app) using the investor's bank account information.
The UPI ID for the IPO application has the format xxxxxx@bank/payment application. The first part of the UPI ID is either the user's cell phone number, a partial email ID or the first name. The second part is the name of the bank or the name of the payment application. For example, if Aarav Updhyay created a UPI ID with his name and linked it to his ICICI bank account, his UPI ID would look like aarav@icici. In some cases, a specific prefix/suffix can be added to the second part.
The UPI payment method to apply for an IPO is available only for individual investors.
The IPO UPI limit has been raised to Rs.5 lakhs from the earlier limit of Rs.2 lakhs. However, the limit for retail individual investors continues to remain at Rs.2 lakhs.
Individuals who wish to apply under the Non-institutional category for an IPO amount up to Rs.5 lakhs can apply using UPI.
Once investors submit an IPO application, the application is not considered complete until the UPI mandate request is approved. According to recent changes in the IPO process, only those bids are considered valid and uploaded to the exchange where funds are blocked. Therefore, it is important for investors to approve the mandate requests within the cut-off period of IPO UPI to avoid rejection of their bids.
IPO UPI Payment Time Limit: Before 5 PM on issue closure date.
The cut off time for the IPO UPI payment is 5 p.m. on the issue closure date. However, brokers usually keep a buffer of half an hour or more to avoid last minute tech glitches. Investors must check with their broker for the last time to complete the IPO UPI payment. The above IPO UPI mandate accept time is also applicable for modification or cancellation of the bid.
It is necessary to approve the IPO UPI mandate request when investors apply for an IPO through UPI. If the mandate request is not approved within the cut-off, the investor's bid is not considered valid and does not get uploaded to the exchange.
Investors may come across various scenarios/statuses in respect to the mandate requests. Let us understand each of them as stated below:
Each UPI mandate request has a validity period as set by the applicant/bank. Investors can check the IPO UPI mandate validity in the UPI app under the "Mandate" section. If the mandate request has expired, investors will need to re-initiate the transaction. According to the new rules of UPI IPO, the UPI mandate request should be approved before 5 pm of the issue closure date.
If the IPO UPI mandate request is not received within an hour, delete the earlier IPO application and submit a new one.
Sometimes, the IPO UPI payment gets failed or the authorisation gets failed due to technical issues at the bank's end or with the UPI app. In such cases, cancel the original request and submit the new IPO application request.
If an applicant wishes to withdraw or cancel their offer after the application has been submitted, they may do so by cancelling/withdrawing the offer and then cancelling the mandate application. An applicant may revoke (cancel/withdraw) the mandate by contacting the intermediary through which the offer was submitted. Once the mandate request is revoked, the money will be released from the account immediately.
The applicant can check the status of his/her UPI IPO application through the broker/bank through which the application was submitted. If the application was submitted offline, you can check and verify the bids on the website of the Stock Exchange (NSE/BSE) using the bid number provided on the IPO application form.
Steps to check the IPO UPI confirmation status for bids submitted online:
Note: The nomenclature of status may differ slightly for each broker/bank.
The applicant can also check the UPI IPO allotment status as described above. However, not many brokers/banks maintain the live Allotment Status. You can visit Chittoragh.com IPO allotment status page or the Registrar's website to check the allotment status of the applied IPO.
In case of successful allotment, the shares will be credited to your demat account. However, in case of no allotment or only partial allotment, you will receive the UPI IPO refund as per the scheduled refund timelines of the issue.
If an investor faces any issues in respect to blocking or unblocking of funds or IPO application status, the investor should first approach the respective intermediary.
The investor may also contact the bank/SCSB or the registrar.
In case of any problem related to the UPI transaction, the investor can also file a complaint on the UPI Dispute Redressal Mechanism portal. The investor shall select the desired option depending on the nature of the complaint, i.e. whether the complaint is related to the transaction, PIN, account, registration, login or other issues, and provide the details of UPI ID and the nature of the transaction and its details.
If the investor is not satisfied with any of the above ways, he/she can file a complaint with SEBI.
All complaints related to UPI addressed to the intermediaries should have the below details:
The estimated average time taken by the registrar or the SCSBs for resolving the investor grievances ranges between 7-10 business days from the date of receipt of the complaint.
Bhim is a payment app that makes it easy to transfer money via UPI. Bhim stands for Bharat Interface for Money. With the Bhim UPI app, you can easily submit IPO applications.
Once investors submit an IPO application through UPI ID, they will receive a notification and SMS from their Bhim app informing them about the status of their mandate.
Steps to approve the Bhim UPI IPO mandate request:
If the Bhim UPI IPO mandate is not received within one hour, re-initiate the transaction or contact the intermediary (if you submitted a physical application) to verify that the intermediary submitted the application
Sometimes investors may receive the message 'Bhim UPI IPO failed transaction' because the payment could not be processed successfully. There are various reasons as listed below that can lead to payment failure.
In case of any issues with respect to the IPO transactions processed through Bhim UPI app, first reach out to the intermediary/bank through whom the request was raised or re-initiate the transaction.
Investors can also raise complaints on the BhimUPI IPO complaint portal and enter the issue details choosing the correct option. Investors can also dial in the toll-free Bhim UPI customer care number 18001201740 for any generic issues.
Google Pay, commonly known as Gpay, is a payment app from Google that lets investors transfer money directly from your bank account. Investors can also apply for an IPO via UPI using Google Pay.
Once investors apply for an IPO with their Gpay UPI ID, they will receive a UPI mandate notification in their Gpay app.
Steps to approve the UPI mandate for ipo gpay:
In case UPI mandate fails, re-initiate the transaction or reach out to the intermediary through whom the IPO application was processed.
Immediate Payment Service (IMPS) is an electronic funds transfer system for instant payments between banks in India.
Using IMPS as a fund transfer system, you can transfer money 24/7 throughout the year, even on holidays.
The National Payments Corporation of India (NPCI), an umbrella organization for the operation of retail payments and settlement systems in India, is an initiative of the Reserve Bank of India (RBI) and the Indian Banks' Association ( IBA) under the provisions of the Payment and Settlement Systems Act, 2007, to create a robust payment and settlement infrastructure in India.
The National Payments Corporation of India is a coordinating body that supports services such as UPI Payment, Bharat Bill Pay, RuPay Card, FASTag, and NACH.
UPI PIN is a 4-digit PIN, required to approve a payment request in the UPI app.
UPI PIN is set by the user and is a one-time process. It is sensitive information that should not be shared. You can change your PIN at any time through the UPI app. The UPI PIN is different for each UPI ID /bank account.
A UPI ID for IPO applications is the unique address of the investor on the UPI platform.
A UPI ID is an alpha-numeric address consisting of two parts and having the format xxxxxxx@bankname/applicationname. The first part can be either the investor's mobile number, name or email ID, while the second part is the bank name or payment application name (with or without prefix or suffix).
Investors can create the UPI ID using any of the UPI Apps live on IPO.
UPI ID is a mandatory ID to apply for an IPO through the UPI payment gateway.
An investor can use the existing UPI ID or create a new UPI ID through any of the UPI apps like Bhim, Gpay, Phonepe, Paytm etc. An UPI ID is the unique virtual payment address of the investor. An investor needs a UPI ID and UPI PIN to apply for an IPO through UPI.
Investors can apply for an IPO through one of the following apps or websites namely GPay, Bhim, Phonepe, Paytm or through one of the banks offering UPI services.
UPI is a real-time and instant payment system that allows investors to transfer money from their bank account. When applying for an IPO with UPI ID, investors must approve the UPI mandate request to complete the application process.
UPI ID creation is a one-time process that can be done using any of the approved UPI payment apps like Bhim, Gpay, etc.
Steps to create UPI ID for IPO
Investors can change UPI ID in the IPO application online only if the status of the UPI ID is invalid.
Once the mandate is approved and the IPO application is successfully submitted, changes to UPI ID will no longer matter because the mandate will be executed using the account number linked at the time the mandate was created.
A user can create multiple UPI IDs (4 in Gpay, 2 in Bhim). If the user wants to change the default UPI ID to another UPI ID when applying for an IPO, he can do so in the profile settings of the respective payment app.
Yes, you can apply for IPO without UPI using ASBA payment mode.
If an investor does not have UPI ID or has problems with the UPI app, they can apply by providing the ASBA bank account number.
In the ASBA payment method for IPO applications, the respective application amount will be blocked from the bank account and debited only in case of a successful allotment. In case of partial or unsuccessful allotment, the refund process will be initiated and the amount will be released from the account.
Investors can apply for an IPO through ASBA net banking or submitting a physical IPO application form in case of any issues with UPI.
Steps to apply for IPO online without UPI
Steps to apply for IPO offline without UPI
Note: Ensure to have the required balance in the bank account.
Yes, you can apply for an IPO without UPI ID. A UPI ID is mandatory only if you use UPI payment mode.
You do not need UPI ID, if you are applying for an IPO through ASBA services. You must have an account with a bank that offers ASBA. Almost all well-known and national banks offer ASBA services. Click here for the list of ASBA-supporting banks.
All you need to do is provide your ASBA bank's account number in the payment section of the IPO application form or you can apply through your bank's Net banking services.
You can change UPI ID in the IPO application before you apply for an IPO or if the status of the UPI ID used for the IPO application is invalid.
Once you approve the UPI mandate request and IPO application is successfully submitted, you cannot change the UPI ID. Any modification in the UPI ID after approval of the mandate request is irrelevant as the funds get blocked from the bank account for which the mandate was created and approved.
You can use any UPI ID for IPO applications as long as the payment app/banking system is connected to NPCI to provide UPI IPO services.
You can use your existing UPI ID or create a new UPI ID for an IPO application. Many payment apps allow you to create multiple UPI IDs. You can create your own UPI ID for IPO applications or switch as deem fit.
The UPI mandate is the approval request required to complete the payment process in an IPO application.
When investors apply for an IPO using UPI ID, they receive an UPI mandate request that they must review and approve. Investors must approve the UPI mandate request before the deadline to complete the IPO application process.
The UPI status "Pending" in IPO means that the payment has not yet been completed and the IPO application has not yet been submitted.
Investors must authorize the UPI mandate request before the IPO UPI mandate time of 5 p.m. on the day the issue closes to complete payment. If investors have any problems or the payment fails, re-initiate the transaction.
The UPI status in IPO indicates the status of UPI payment made by the investor for IPO application by UPI.
If the payment is successful and approved within the deadline, the investor bid will be uploaded to the exchange. However, if the mandate is not approved or fails, the application will be rejected. Therefore, it is important to check the status of IPO UPI and take the necessary actions.
Below are some of the generic UPI status:
Note: The nomenclature for status may differ slightly for each app/bank
If the status is "pending", investors must go to the app and approve the mandate. If the status is "failed/expired", re-initiate the transaction. Investors can check the status of their UPI payment in the "Mandate" section of the UPI app under "Pending/Active". The approved mandates are displayed on the Active tab.
UPI in IPO is a step towards digitizing the payment system in IPO applications to make it more efficient, faster, easier and more convenient.
UPI is mandatory for IPO if the investor intends to submit the application online through a broker. UPI payment mode is available only to individual investors applying for IPO up to Rs. 5 Lakhs.
In case an investor does not have UPI ID or wishes to apply offline or through netbanking, he/she can apply for IPO using ASBA.
UPI ID is mandatory for IPO applications that use the UPI payment gateway.
UPI ID is the investor's unique address that identifies the investor on the UPI platform and accordingly blocks the funds from their account once the UPI mandate is approved.
If an investor applies through ASBA mode, UPI ID is not required. The investor must provide the ASBA bank account number for blocking the funds.
You can request an IPO through any one of the UPI payment apps that work with NPCI to provide UPI services for IPOs.
Attached is the list of mobile applications for using UPI for public offers. It is important to note that some of the apps only work on Android, while all others support both Android and iOS.
Below are some of the popular apps for UPI IPO:
Investors can check the status of IPO UPI in the payment app or on the platform of the intermediary through which the request is made. Investors will also receive an SMS informing them of their UPI status.
Steps to check IPO UPI Status:
Investors can apply for an IPO online through the broker platformusing their UPI ID.
Steps to apply for an IPO through UPI:
If you apply for an IPO offline through UPI ID, you will receive the UPI mandate request for approval when the intermediary processes your application. In offline mode, you must enter your UPI ID in the payment section field of the IPO application form.
You can accept UPI mandates for IPO via the payment app or via the notification you receive, which lands directly on the UPI approval page.
Steps to accept UPI mandate for IPO:
Investors can authorize UPI payment from the SMS notification received on their mobile or from the UPI app.
Steps to authorize UPI Payment for IPO:
Sometimes investors do not receive the UPI mandate due to technical problems or server failure on the part of the bank.
In certain cases, it takes about an hour before you receive a UPI mandate. If you still do not receive the mandate, resubmit the application.
Ensure to check the below before re-initiating the IPO application :
A UPI ID is required to complete payment using the UPI payment mode. Without a UPI ID, the payment cannot be completed. So if you want to pay via UPI apps, you need to create a UPI ID.
A UPI ID is the unique identity of an investor on the UPI platform. Based on the UPI ID provided, the amount will be blocked from the linked bank account upon the approval of the UPI payment request.
UPI is required for individual investors who wish to invest up to Rs 5 lakhs in an IPO through the broker's trading platform.
IPO with UPI is a step towards making the IPO application process efficient and reducing the time frame for listing. UPI payment mode is introduced in a phased manner with an aim to make it mandatory in future.
An UPI mandate can fail on account of various reasons The investors can re-submit the application in case of UPI mandate failure.
Reasons for UPI mandate failure:
The IPO UPI mandate is a permission request from the investor to authorize the bank to block the IPO application amount from the bank account.
The investor must approve the mandate via the website/app using the UPI PIN. Only when the mandate is approved, the application is considered complete and the bid is uploaded to the stock exchange.
The IPO UPI mandate can be cancelled by cancelling the IPO application. In case of any issues, reach out to the intermediary through whom the application was made.
Cancellation of IPO UPI mandate means that the application is revoked/withdrawn.
Once you cancel the IPO application, the block set up for the funds will be lifted by the bank. It usually takes 24 hours for the block to be lifted. However, this time period may vary from bank to bank.
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