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UPI for IPO Application (Unified Payments Interface for IPO)

Published on Friday, January 4, 2019 by Chittorgarh.com Team | Modified on Friday, July 26, 2019

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UPI for IPO Application (Unified Payments Interface for IPO)

UPI means Unified Payments Interface. It is an instant payment system on the mobile platform. It offers inter-bank transfers between any two persons' bank accounts i.e. sending or receiving money in real-time among banks in India. In addition, UPI also allows blocking money for special purposes like IPO applications.

The National Payments Corporation of India developed UPI. It is regulated by the RBI.

In late 2018, SEBI permitted UPI as an alternative payment option for retail investors (Up to Rs 2 Lacs) to invest in IPO.

How UPI will help the IPO Process?

  • To bring down the time it takes from issue closure to the listing to 3 working days.
  • Like ASBA process, the money will remain blocked in the bank account until the allotment.
  • Investors can apply in IPO online through any broker (including discount brokers).
  • No limitation to apply IPO online only through few banks i.e. ICICI, SBI or HDFC.
  • Reduce the need for manual intervention at various stages in the IPO process.
  • Increase efficiency by streamlining the amount locking.
  • UPI is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood.

UPI is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood.

Requirement for getting BHIM UPI App

Each Bank provides its own UPI App for Android, Windows and IOS mobile platform(s). As of May 2019 IPO through UPI Mechanism in Retail Category is working on only BHIM App.

  • Smart phone to download BHIM App
  • Bank Account having UPI facilities
  • Mobile number linked with same Bank Account
  • Active Debit card from the same bank to set UPI PIN

Steps to Apply in IPO using BHIM UPI App (First time users)

  1. Download and Install BHIM app from Google Play store or Apple App store
  2. Select your preferred language
  3. Select SIM which has mobile number that is registered with your bank
  4. Login by setting a 4 digit application password
  5. Select and link your desired bank account
  6. Set your UPI PIN by providing last 6 digits and expiry date of debit card (Debit card is mandatory, in case you do not have one please contact your bank)
  7. In case of multiple Bank Accounts linked to the same Mobile; User has to select Primary Account – through which he will make IPO Application
  8. UPI Id will be 9********0@UPI (user's mobile no.@UPI so if mobile no. is 9820098200 – UPI id will be 9820098200@UPI)
  9. You have to mention the above UPI Id onto IPO Application


  • BHIM is a unique payment solution which can be used without internet as well!
  • You can dial *99# from any phone and avail the same features of BHIM on your mobile screen.
  • You can also register for BHIM using *99#
How to apply in IPO using UPI

UPI IPO Application Process flow

For Investor:

  1. Create the UPI ID at the bank
  2. Enter the bid details in the online IPO application form
  3. Enter UPI ID and submit the form
  4. In background:

  5. The stock broker upload bid details to the stock exchange.
  6. The stock exchange validates PAN and Demat account details of the investor with NSDL/CDSL.
  7. Post validation, the stock exchange share the bid details along with investors UPI ID to the designated IPO merchant banker (sponsor bank).
  8. The sponsor bank requests the investor to authorize blocking of funds through UPI app.
  9. Investors receive notification on UPI App as well as email linked to UPI ID
  10. For Investor:

  11. Investor to confirm UPI request to block funds.
  12. On finalization of basis of allotment, the funds are withdrawn from the bank account and the remaining amount is unblocked.

Implement Stages (UPI Payment for IPO Application)

UPI payment option for IPO application will be implemented in phase as mentioned below:

  • Phase I:

    From January 2019, the UPI is optional for Retail & Shareholder Category Investors. It will work along with the existing ASBA process. The listing of IPO shares will take 6 working days from the date of closure of the IPO.

    Extension of time line for implementation of Phase I of UPI with ASBA

    Apr 03, 2019 As per the SEBI Circular, it has been decided to extend the timeline for implementation of Phase I of the aforesaid Circularby 3 months i.e.till June 30, 2019. The implementation of Phase II and III shall continue unchanged as per the aforesaid Circular from the date of completion of Phase I.

  • Phase II:

    From March 2019 or after 5 mainboard IPO, the UPI will be mandatory for Retail & Shareholder Category Investors. The listing of IPO shares will still take 6 working days from the date of closure of the IPO.

    UPI mechanism shall be mandatory for retail investors for IPOs starting from July 01, 2019 onwards (Phase II).

    July 01, 2019

    SEBI Circular - Implementation of Phase II of UPI

    Key Highlights

    • Investors whose bank is not live on UPI can submit the application using ASBA. List of eligible banks and App for UPI (by SEBI)
    • UPI Mechanism shall be applicable for Retail & Shareholder Category Investors for bid value amounting to Rs 2 Lacs and below only.
  • Phase III:

    UPI to be mandatory for Retail & Shareholder Category Investors with up to Rs 2 Lacs for all IPO applications. The listing of IPO shares will reduce to 3 working days from the issue close date.


  • The UPI payment option is only for Retail & Shareholder Category Investors (Up to Rs 2 Lacs)
  • IPO application payment through UPI will be available for all equity IPO from Jan 1st, 2019.

IPO UPI Application Process Detail (Step by Step Guide)

  1. Investor submits the form to broker with demat account detail, bid detail and UPI ID.
  2. Broker accepts the form and provides an acknowledgment to the investor.
  3. Broker uploads the application on Exchange.
  4. Exchange to validate investors demat account details with Depository (CDSL or NSDL).
  5. In case of a mismatch, the exchange provides mismatch details to the broker
  6. Broker to modify mismatches PAN or DP Details
  7. Exchange to provide UPI details to Sponsor Bank.
  8. Sponsor Bank provides status Accepted / Decline / Pending (Fund Blocking Details) to Exchange.
  9. Investor authorizes Blocking of Funds through Mobile UPI APP, equivalent to application amount.
  10. IPO registrar (i.e. Karvy, Link Intime) receives final bid book from Exchange.
  11. IPO registrar finalize basis of allotment (T+1 to T+2 )
  12. Sponsor Bank unblocks funds for non-allotted shares. (T+4 )
  13. Depositories credit shares (T+4/5 )
  14. IPO lists on stock exchanges (T+6)
UPI IPO Application Process Flow Diagram

Important Links


  1. 1. What is UPI?

    Unified payment interface (UPI) is an instant payment system developed by the National Payments Corporation of India (NPCI). UPI allows the instant transfer of money between any two persons' bank accounts using a payment address which uniquely identifies a person's bank account.

    Note that UPI Mechanism is made mandatory for Retail & Shareholder Category Investors to invest in IPO's for bid value amounting to Rs 2 Lacs and below from July 01 2019.

    Discuss this question

  2. 2. What is UPI PIN?

    UPI ID (also called Virtual Payment or VPA) is a unique ID. Individuals need to create a unique payment ID on the app provided by eligible banks/wallet app by adding/linking his bank account details in order to send and accept money via UPI.

    Discuss this question

  3. 3. What is UPI in IPO?

    UPI or Unified payment interface is an instant payment system. It allows the instant transfer of funds between two bank accounts using a payment address which uniquely identifies a person's bank account.

    SEBI has made mandatory for retail investors to use the UPI Mechanism for applying in IPO from July 1st, 2019. Investors applying in an IPO using Retail & Shareholder Category for bid value amounting to Rs 2 Lacs and below has to apply using UPI payment options.

    The earlier ASBA payment option to block the funds is no more available to the customers.

    Discuss this question

  4. 4. How many applications we can bid for an IPO through UPI from one account (according to the new rule of SEBI)?

    As per the SEBI Circular - Revised IPO rules for UPI, page 6 says:

    In order to ensure parity across the various channels for submitted applications, it has been decided that an investor making application using any of the aforesaid channel, shall use only his / her own bank account or only his / her own bank account linked UPI ID to make an application in public issues.

    It means once the UPI is fully implemented only 1 IPO application will be allowed per bank account. Also, the bank account should belong to the same person who is applying for IPO. This is unlike earlier where banks like SBI use to allow 5 application from one bank account, the new rule will allow only 1 application per bank account in an IPO.

    This new rule will put a lot of hardship to Minor Account where online transaction banking is not allowed by most of the banks. It will also make it difficult for investors who apply for 1 application on each family member's name using the same bank account to increase the chance of allotment in an IPO.

    Discuss this question

  5. 5. What happens when an IPO request through IPO has expired?

    In case the IPO Request has expired, the transaction will be declined and needs to be re-initiated by Broker.

    Discuss this question

  6. 6. Will the net banking based ASBA process for IPO completely stop after UPI phase 1?

    Note: As per the SEBI circular on April 03, 2019, the Phase I of UPI implementation is extended till June 30, 2019. This time SEBI didn't set limit of number of IPO in this duration.

    You would not be able to apply in IPO using ASBA (net banking) after this date.

    Discuss this question

  7. 7. How does UPI help me?

    UPI is an online fund transfer/payment method similar to NEFT, RTGS or IMPS.

    Every time you send or receive money online (using to NEFT, RTGS or IMPS), you have to share the bank account information i.e. Bank Name, Account Number, IFSC code etc.

    With UPI, sharing the bank account detail is not required.

    Using UPI you could create a unique ID for a bank account. This ID is called Virtual Payment Address (VPA). It's like a personalized email address which you share with anyone whom you would like to transact online. No need to share bank account details with UPI.

    Example of VPA: rajivsingh916@icici

    This unique code is linked with one of the bank accounts in the background. You have to share only VPA for transfer and not the whole bank account detail.

    VPA is unique for each account. If you have 5 bank accounts on your name in the bank, you have to create 1 UPA for each account.

    Discuss this question

  8. 8. What is VPA (UPI PIN, UPI ID or UPI Code)?

    The Virtual Payment Address or VPA is the most important concept of UPI. It is also known as UPI PIN, UPI Code or UPI ID.

    VPA is a unique ID which you create for your bank account. This unique ID can be used for online money transfer across the banks in India similar to IMPS, NEFT, RTGS etc.

    UPI VPA look like 'rajivsingh916@icici'.

    If someone wants to transfer money to you, you just have to provide this ID. No need to provide the bank account number, IFSC code, name etc.

    Discuss this question

  9. 9. How do I open UPI Account? How do I register to UPI?

    Each banks mobile banking application has UPI as a payment option. Simply log in to mobile banking app and create a new VPA for your account with a choice of your words. That's it. It is as simple as creating an email address.

    Discuss this question

  10. 10. How to use UPI with ICICI Bank?

    For ICICI Bank customers, UPI is available in its iMobile App which offers mobile banking.

    Steps to setup UPI in ICICI Bank:

    1. Login to ICICI iMobile banking app.
    2. Click on 'BHIM UPI' box.
    3. Click on 'Manage' button.
    4. Click on 'Create Virtual Payment Option'.
    5. Select account number you want to link.
    6. Enter your choice of words for a unique ID. Check availability.
    7. Get the confirmation. That's it.

    One the UPI ID created for the bank account, you can use it for any UPI online fund transfer or payments.

    Other banks including HDFC, Kotak and SBI have similar steps to follows.

    Discuss this question

  11. 11. From when can I use UPI as a payment option in IPO?

    UPI as a payment mechanism for IPOs is applicable in all IPOs for which Red Herring Prospectus is filed after January 01, 2019. UPI will be mandatory for retail investors from from 1st July, 2019.

    Discuss this question

  12. 12. Can I submit the IPO application with UPI with my broker?

    IPO application forms with UPI as a payment mechanism can be submitted with either, a Syndicate Member, a Registered Stock Broker, a Registrar and Transfer Agent or a Depository Participant ('Intermediaries').

    Discuss this question

  13. 13. Up to what limit a retail investor can I apply for an IPO in UPI?

    The limit for IPO application is 2 Lakhs per transaction on UPI.

    Discuss this question

  14. 14. What if my bank is not providing UPI service for IPO?

    In case your bank is not providing UPI services for IPO, you may make use of your bank account for blocking of funds and depending upon the Phase (I, II or III) in which the application is being made, submit the application with the respective SCSB or intermediary.

    Discuss this question

  15. 15. How do I select UPI as the payment option while applying for IPO?

    The application form for an IPO, now also includes a field for entering your UPI ID as a payment mechanism. Further, you can get in touch with any of the Intermediary who shall be able to guide you on the process in detail.

    Discuss this question

  16. 16. Can I use third party UPI ID or a third party bank account for making payment in IPO?

    No. Applications made by retail investors using third party UPI ID or by any category of investors using a third party bank account are liable for rejection.

    Discuss this question

  17. 17. What if I by mistake decline the UPI collect request to block funds for IPO?

    In case the collect request is erroneously declined by you, the transaction will be declined and you will have to initiate a fresh request again. The transaction can be re-initiated by approaching the intermediary where your bid cum application form has been submitted.

    Discuss this question

  18. 18. What if I do not want to proceed with the UPI IPO application? Can I withdraw my bid?

    Retail individual investors can withdraw bids till issue closure date. During the bidding period you can approach the same intermediary to which you had submitted the application form for withdrawal.

    Discuss this question

  19. 19. What if I get a technical error on the UPI App while accepting the IPO request?

    In case of a technical decline, you need to reinitiate the payment process from the IPO Portal. The transaction can be re-initiated by approaching the same intermediary to which you had submitted the application form.

    Discuss this question

  20. 20. Will I be notified when the bid is successfully placed for IPO using UPI?

    Yes, once the bid details are uploaded on the stock exchange platform, the stock exchange shall send an SMS to you regarding submission of your application, on end of day basis. For the last day of bidding, the SMS may be sent out the next working day.

    Discuss this question

  21. 21. What happens if I don't get a blocking request from the broker on the UPI id entered in the application form?

    You may approach the broker to which you had submitted the application form for re-initiating the process. You may also like to check whether the UPI ID recorded is correct or not.

    Discuss this question

  22. 22. What if I input wrong UPI PIN while authorizing the request from IPO?

    The transaction will be declined with 'Wrong UPI PIN' and you will have to re-initiate the transaction. The transaction can be re-initiated by approaching the same intermediary to which you had submitted the application form.

    Discuss this question

  23. 23. Can I modify/cancel an IPO request made using UPI by visiting my bank branch?

    The Modification/Revoke can be done online or by visiting the respective bank branch before IPO is close for subscription.

    Discuss this question

  24. 24. Is there any timeline by which I need to act upon the block request from UPI for IPO?

    Yes. In Phase I, all block / collect requests which have not been acted upon by 12:00 p.m. on T+2 day i.e. two days after closure of the issue, would lapse. In Phase II, all block / collect requests which have not been acted upon by 12:00 p.m. on T+1 day i.e. one day after closure of the issue, would lapse.

    Discuss this question

  25. 25. How do I know that the UPI block request from IPO is not fraudulent?

    The block request from IPO is not fraudulent in case the UPI ID is marked as a "verified merchant". Please look out for the indication of a Verified Merchant tag when you receive the request on you App for blocking the amount that you have BID in the IPO. The request is received as a collect request on your UPI enabled App. Further also please verify the details including your Bid-cum application number, amount and other bid details received during the collect request.

    Discuss this question

  26. 26. What if my amount is blocked twice for a single IPO request using UPI?

    You can raise a complaint with the bank/s with the respective Unique Mandate Number provided for the Mandate.

    Discuss this question

  27. 27. What happens if I deregister from the UPI App after accepting the IPO request?

    De-registration will not be available from the application until the active mandates are revoked / Executed.

    Discuss this question

  28. 28. What happens if I do not have sufficient balance in my bank account while accepting the IPO blocking request through UPI?

    The UPI transaction will be declined in case the account has insufficient funds.

    Discuss this question

  29. 29. Can I use the same UPI PIN for accepting the IPO block request?

    Yes, the same UPI PIN can be used to accept an IPO mandate / block request.

    Discuss this question

  30. 30. How many times do I need to input UPI PIN for creating and processing the IPO block request?

    UPI PIN is required only once at the time of creation of the Mandate.

    Discuss this question

  31. 31. To whom should I approach if I have some issues with the IPO block request, my bank or my broker?

    Customer should reach out to their bank with the Unique Mandate Number (UMN) for the respective IPO Mandate / Block request.

    Discuss this question

  32. 32. How do I know if my bank is providing IPO services through UPI?

    You can check www.npci.org.in for the list of Banks available for the IPO Service on UPI.

    Discuss this question

  33. 33. Can I modify the bid quantity, price, block amount, etc., when I UPI receive a block request for IPO?

    No, the values cannot be modified for the request received for blocking the funds in your account. Any modification to the bid has to be undertaken by approaching the intermediary through whom the bid was placed.

    Discuss this question

  34. 34. Till what time I can authorize the modification UPI request for IPO?

    In Phase I, all modification requests initiated within the prescribed time can be acted upon by 12:00 p.m. on T+2 day i.e. two days after closure of the issue. In Phase II, all modification requests initiated within the prescribed time can been acted upon by 12:00 p.m. on T+1 day i.e. one day after closure of the issue.

    Discuss this question

  35. 35. Till when can I revoke an IPO mandate request through UPI?

    A mandate request once created can be revoked till closure of the issue. The revoke can be initiated through the intermediary with whom the initial application was submitted for bidding.

    Discuss this question

  36. 36. What does revoking an IPO request through UPI mean?

    Revoking an IPO request is cancelation of the IPO Bid and the corresponding block mandate.

    Discuss this question

  37. 37. What happens if revoking of an IPO though UPI fails due to technical error?

    In such a case, you would need to re-initiate the revoke request. Such re-initiation of a revoke request can be done initiated through the Intermediary with whom the initial application was submitted for bidding.

    Discuss this question

  38. 38. What happens if I get partial allotment for IPO applications through UPI? Will my money be unblocked for the remaining shares?

    In case of part allocation, money will be debited for the allocation value and the residual amount will be unblocked to your account.

    Discuss this question

  39. 39. What happens if I do not get any shares but my money remains blocked when applying IPO through UPI?

    In case the shares have not been allotted to you and money is not unblocked / reinstated in your account, you may raise a complaint through the UPI App.

    Discuss this question

  40. 40. What are the steps in UPI IPO process in India?

    UPI mechanism is made mandatory for retail investors for IPOs (Mainboard and SME) starting from July 01, 2019. Below is the Step-by-Step UPI Process applying in IPO using UPI.

    1. Investor to create UPI ID with UPI eligible bank and app.
    2. The investor enters the bid details in the online IPO application form provided by the broker along with UPI ID and submits an application form to the broker, who in turn upload the bid details on the stock Exchange bidding platform.
    3. Exchange validates PAN and Demat account details of the investor with NSDL/CDSL.
    4. Post validation, the Exchange shares the bid details along with investors UPI ID to sponsor bank. In case of invalid UPI ID investor may request the broker to modify the bid after providing valid UPI ID.
    5. The sponsor bank initiates the fund-blocking request through investor bank. Investors receive a notification on App/E-Mail ID linked to UPI ID.
    6. Investor to confirm request on mobile App by entering a valid PIN.
    7. In case of non-receipt of request/notification investor may request the broker to retrigger the bid by using resend option on NSE e-IPO platform.
    8. On finalization of basis of allotment Debit/Unblocking of Funds shall be initiated by Sponsor Bank.

    Discuss this question

  41. 41. How do I get the UPI ID for a Minor Account?

    As per the bank guidelines:

    Only minor above the age of 15 with a bank account as a single (not joint) are eligible for UPI.

    Minor below the age of 15 years or a minor who is a joint account holder is not eligible for UPI.

    Please consult with your bank for more detail.

    Discuss this question

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28. Noor  Oct 14, 2019 10:57 Reply
IRCTC ipo refund is not got yet, my bank is hdfc. Any got refund?
28.1. Vasudeo  Oct 14, 2019 19:08
I also didnt get the refund.
What is procees ro get funds back.my bank is sbi
Rajendra Lengare
27. Rajendra Lengare  Oct 14, 2019 09:48 Reply
Dear sir plese chack my manadetry upi irctc ipo amoumt debit and ipo not issu plese refund my accound my amound
26. Govind  Oct 12, 2019 13:08 Reply
Refund of IRCTC amount not credited to Account
Whom to contact
25. Karziva  Oct 10, 2019 21:03 Reply
Anyone applied through SBI upi. I got the allotment confirmation today and post that i received a collect request however the UPI collect request got failed. Will the fund still be debited from my account or will i again receive a new collect request?
25.1. M KRISHNAMA NAIDU  Oct 12, 2019 12:34
In my case also same happened. But till now i.e. 12.10.19 amount is not debited. Not know what to do?
Kishor Jobanputra
24. Kishor Jobanputra  Jul 29, 2019 22:29 Reply
We four family members applying through ASBA
in IPO..
My question is that : There r four different SB accounts of all we four applicants...
But mobile number in all accounts is SAME...
Is it possible to apply through UPI with the same mobile number in all four accounts?
Sanjaykumar Mafatbhai Patel
24.1. Sanjaykumar Mafatbhai Patel  Oct 9, 2019 09:27
No. You are not able to creat UPI ID for all four accounts due to same mobile number. You can creat only one upi id with that number. So change the mobile number link to another three bank accounts so you can creat upi id for all banks.
anjansai kumar kanamarlapudi
23. anjansai kumar kanamarlapudi  Oct 1, 2019 15:33 Reply
can we apply for IRCTC IPO through ASBA mode ( not 3 in 1 account ) -
22. ANUJ  Sep 30, 2019 13:37 Reply

mujahid bk
21. mujahid bk  Aug 1, 2019 18:05 Reply
hello I need small information , How UPI earn income ?
Team Chittorgarh.com
21.1. Team Chittorgarh.com  Sep 28, 2019 08:54
UPI is a product of National Payments Corporation of India (NPCI), a company promoted by RBI and Indian Banks' Association (IBA).

The idea is to creating a robust Payment & Settlement Infrastructure in India. A part of this area is currently dominated by foreign companies i.e. Visa, Master card.

The company is 'Net for Profit' company. It charges from bank for payments and inter-bank settlements. Eventually they may start charging a small fee from retail customers also.

You can find more information about:
Chandrakant Chunilal Shah
20. Chandrakant Chunilal Shah  Jul 30, 2019 10:41 Reply
What is the difference between the existing ASBA process and the ASBA Phase-II?
Other than the Retail Individual investors ASBA will be extended to the following categories of investors: Bodies Corporate - CO Non Institutional Investors (NII) - others (all entities other than QIBs Bodies Corporate and Individuals) - NOH Retail Individual Investors (RII) - (Individuals applying upto Rs. 2 lakh) as well as individuals/HUFs, Trusts etc. applying for more than Rs.1 lakh) - IND Employees - EMP Shareholders - SHA

After the successful launch of ASBA Phase I and a good market response for the same, amongst the retail investors, SEBI decided to extend this facility to other categories of investors also. Under Phase II, the ASBA facility will be extended to investors like High Net worth Individuals, Bodies Corporates and NIIs (Non-Institution Investors) with option to give price bids and revise and withdraw their bids during issue period with effect from 1st Jan 2010.
ASBA is now not available to Qualified Institutional Investors.
Price Bids and Multiple Bids to all categories of investors will be permitted i.e. instead of a single bid at cut-off the investors will have a facility to quote price bids not more than three under ASBA. In addition to the application cancellation facility, the investors will now have the facility to revise or modify their bids. These facilities will be available to all categories of bidders including retail investors.
No document validating the category of investors is to be submitted with the SCSB.
Investors will be permitted to revise and withdraw their bids till bid closure time.
Under ASBA Mode from a single bank account for a particular IPO not more than 5 applications can be made.
19. ashish  Jul 25, 2019 13:01 Reply
Need some info about IPO apply.
I donot have Debit card nor want to use UPI for IPO application.
My demat account and trading account are with one broker and bank account is with different bank. there is not auto debit of money from saving bank account for the share i purchase.

Do I have any way to apply in IPO?
Team Chittorgarh.com
18. Team Chittorgarh.com  Jul 3, 2019 10:17 Reply
UPI mechanism shall be mandatory for retail investors for IPOs (Mainboard and SME) starting from July 01, 2019 onwards (Phase II).

Here are few key highlights:

1. Investors having 3-in-1 type account can continue with existing process. This includes customers applying from ICICI, HDFC, Axis, Kotak etc.

2. Bank ASBA can be an option for investor not having smart phone/UPI id

3. UPI Mechanism shall be applicable for Retail & Shareholder Category Investors for bid value amounting to Rs 2 Lacs and below only.
18.1. Pradeep  Jul 18, 2019 15:28
Plz conform us...can we apply in ipo through netbanking.
17. Millinerajay  Jul 6, 2019 14:05 Reply


Retail Individual Investors will continue to have an option of Bank ASBA if bidding through Self Certified Syndicate Banks (SCSBs) with Bank ASBA facility and Trading Members providing the option to submit online bid-cum-application form using the facility of linked online trading, demat and bank account (3-in-1 type accounts).

Looking forward to your continued support in using UPI IDs while applying for IPOs at BSE IBBS platform.

Net banking allowed for bidding
dhyan jain
16. dhyan jain  Jul 1, 2019 10:30 Reply
@admin kindly answer my question.about timeline of ipo applying by upi.
Team Chittorgarh.com
16.1. Team Chittorgarh.com  Jul 2, 2019 08:41
Dear Sir,

Sorry for the delay in response.

As per the current status, UPI is mandatory for all the IPO (mainboard and SME) starting from July 1st, 2019. But there is a confusion around its real implementation as most brokers/banks are not yet ready with the implementation.

We are gathering more information from NSE. We will post updates as soon as we get them.

Thank you,
Team Chittorgarh
dhyan jain
15. dhyan jain  Jun 30, 2019 06:54 Reply
Dear admin
Kindly share with us new update for applying ipo after 30 june.banks and brokers are agree with upi? please clarify with us
Jinesh jain
14. Jinesh jain  Jun 30, 2019 06:47 Reply
Please update the new rules for ipo after 30 june.
Dineshchandra D Agrawal
13. Dineshchandra D Agrawal  Jun 26, 2019 13:37 Reply
I have 2 bank account 1 for self with Bank A and another for HUF with bank B Can I made
2 Applications form my each bank
Dineshchandra D Agrawal
13.1. Dineshchandra D Agrawal  Jun 26, 2019 15:42
I have same phone No. in both accouts
12. ANKIT  Jun 26, 2019 15:23 Reply
If i use any wallet BHIM UPI (i.e. PAYTM, PHONEPE, GOOGLEPAY, ETC) will it work.
Wallet BHIM UPI solely connect from my Bank Acoount.
Request for advise.
Dineshchandra D Agrawal
11. Dineshchandra D Agrawal  Jun 26, 2019 13:27 Reply
I have 5 demat account and 5 trading accounts in the name of my family members with 5 bank accounts , all 5 bank demat and bank account having one phone No. and I am receiving all confirmation on my phone with concern account no.

Can i created one UPI and apply for all 5 members account like me, wife, huf and son daughter account
Ankita Joshi
10. Ankita Joshi  Apr 17, 2019 13:35 Reply
Backdoor Arm Twisting to Switch to Mobile App. I have 3 Bank Accounts and Do NOT Want to use Mobile-App. Mobile-App has Access to our SMSs and other Details. Data Breach and Our Bank Accounts are as good as Emptied.
Team Chittorgarh.com
10.1. Team Chittorgarh.com  Apr 27, 2019 19:46
This is a valid concern. We have to be extremely careful while installing an app on our phone and the permissions given to them.

Unfortunately, most mobile banking apps, payment gateways, and trading apps doesn't work without giving them permission to your SMS, contacts and other features. We hate distributing our personal information and financial data (get in SMS alerts i.e. bank balance, trade value, etc.) to anyone.
Team Chittorgarh.com
9. Team Chittorgarh.com  Apr 9, 2019 21:20 Reply

Why banks and stockbrokers are not ready with UPI Payments for IPO applications?

National Payments Corporation of India provides UPI API to banks. Banks today are using UPI 1.0 version of API.

The lean marking feature (blocking the funds in a bank account) is made available in UPI 2.0 API. As UPI 2.0 API have massive changes over the 1.0 version, the banks require enough time to test the application before they move to UPI 2.0.

The fund transfer limit is increased from Rs 1 lakh per transaction to Rs 2 lakhs in UPI 2.0. This also put banks at higher risk in case something goes wrong.

Unless bank upgrades their system to UPI 2.0, they can't provide their UPI 2.0 enabled bank API to their customers including brokers. So brokers cannot implement UPI 2.0 based payment for IPO until banks provide them the upgraded API's. Once the bank releases the feature, it will take some time for brokers to test and implement it.


Other challenges with the UPI implementation planned for phase 1:

  1. Minors cannot apply in an IPO as they can't get UPI even they have their own mobile number.
  2. HUF and Karta can only apply in 1 application as in most cases HUF bank account has Karta's phone number.
  3. Family members who are using the same phone number in the bank accounts can't apply multiple applications. i.e. Husband and wife have 2 bank accounts but both linked to the same phone number.
  4. Multiple applications (5) cannot be applied using the same bank account. This is a common feature used by many applicants who apply on all family members name using one account.

As none of the banks are ready yet, it won't be easy to meet extended phase 1 SEBI imposed timelines.

8. juju  Apr 9, 2019 10:48 Reply
Top Contributor Top Contributor (300+ Posts, 300+ Likes)
Did any intermediary has provided facility of applying through UPI online yet?
Team Chittorgarh.com
8.1. Team Chittorgarh.com  Apr 9, 2019 20:43
Hi Juju,
None of the broker or banks are ready yet for IPO application through UPI.
7. Vishavdeep  Apr 9, 2019 16:21 Reply
Today applied for polycab via asba.
Couldn't see any option via upi.i use kotak bank.
Is there any IPO form from zerodha.
In fact any where I can get IPO via upi forms.
Can't find anywhere.
Team Chittorgarh.com
7.1. Team Chittorgarh.com  Apr 9, 2019 20:39
Dear Mr Vishavdeep,

We have checked with multiple banks including ICICI, HDFC, Kotak, and SBI. None of them are offering UPI method to retail investors for applying in IPO's.

This is despite the 1st deadline of 31st March has already gone and we just have 2 months for an extended deadline for mandatory UPI only applications.

This is surprising to see how SEBI could set the deadline without even knowing if the infrastructure is ready. At this point, none of the major brokers are even talking about any tentative timeline to launch the UPI payment method.
6. KD  Apr 5, 2019 15:51 Reply
what about minor accounts?
1.SBI didnt give debit card or online payment authority in minor account.
2.does it means we need a separate mobile no & email account for each bank & demat?
3. Does it means the same mobile no should be registered with bank as well as demat?
5. IPOINPUT  Apr 3, 2019 11:16 Reply
Hi Admin Sir
I have a upi ID created using a general BHIM app which is like abc@upi and not abc@bankname. But this ID is linked with my bank account which is further linked with my DMAT account. Can i use this @upi ID to apply in IPO issues ? Please clarify.
4. Rkmaheshwari  Mar 26, 2019 22:01 Reply
From joint bank account two members can generate two different vpi ?
From joint bank account two members can apply two ipo applications?
Anil Singhavi
3. Anil Singhavi  Mar 13, 2019 16:17 Reply
Self Certified Syndicate Banks eligible as Issuer Banks for UPI
1      Allahabad Bank
2      Andhra Bank
3      HDFC BANK
4      ICICI Bank
5      Karur Vysya Bank Limited
6      Punjab & Sind Bank
7      UCO Bank
8      Yes Bank
2. Johny  Jan 29, 2019 00:14 Reply
Top Contributor Top Contributor (300+ Posts, 300+ Likes)
Dear Admin will netbanking based online ASBA be stopped after Phase 2?
Team Chittorgarh.com
2.3. Team Chittorgarh.com  Jan 29, 2019 11:11
The IPO applications will remain 100% online even after UPI. The while idea is UPI is to reduce the listing time.

1. The banks will change their software to support UPI as payment method. The banks like SBI or Kotak will not be able to offer upto 5 IPO applications per bank account.

2. Now any broker (including discount stock brokers like Zerodha) can build their own online IPO application.Soon every broker in India will offer online IPO using UPI api. They will simply request UPI to block the amount and send the confirmation detail to exchange (BSE, NSE) along with IPO application.

Hope this clarifies your doubts.

We have also added few more FAQ's on top.
Puneet Agnihotri
2.4. Puneet Agnihotri  Feb 20, 2019 15:06
Very nice article. Understood the entire bidding process through UPI at a glimpse.

However, in my view the online bidding channel i.e. Bidding through net banking based online ASBA will not be stopped in any phase and will be available for bidding. As pursuant to the SEBI circular SEBI/HO/CFD/DIL2/CIR/P/2018/138, channel bidding wherein Bidding of bid cum application form is being done by any Intermediary and then the forms are being forwarded to SCSBs for blocking of fund are to be stopped from phase II onward.
Rajat Jindal
1. Rajat Jindal  Jan 30, 2019 17:43 Reply
@Admin Only 1 application against one UPI will be a huge setback for those retail investors who apply on different pan cards of family. Is there any possibility that this rule would be done away with?
Team Chittorgarh.com
29.1. Team Chittorgarh.com  Jan 31, 2019 08:35
Yes, that's true.

Broker association is in discussion with SEBI to reconsider this limitation.

We don't expect any change in the policy from SEBI in near future. The only way we see SEBI may reconsidering this is when few IPO fail because of low subscription.

This ruling will also affect grey market activities as the number of applications will reduce. Many people who apply in multiple accounts usually sell them in the grey market.

It will also affect the small issues (mainly SME) where the promoters and the lead manager manages to get local support to apply in IPO. They ask their known once to apply through multiple applications in the promise to adjust the profit/loss in cash or through other favors. Its illegal practice but many SME IPO's uses it to sail through the IPO process.

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