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UPI ID (also called Virtual Payment Address or VPA) is a unique ID. The customer needs to create a unique payment ID by adding his bank account details in order to send and accept money via UPI. Ex: Once the customer enters your UPI ID and sends the money, it will be directly credited into beneficiary’s bank account.

No. The existing UPI ID can be used, provided that:
1) The bank account associated with the UPI ID is held with a bank whose name is appearing in the ‘List of SCSBs eligible to act as an Issuer Bank’ available on website of SEBI;
2) You are using a mobile application and UPI handle that supports use of UPI for IPOs. A list of such application and handles is appearing in the ‘List of SCSBs eligible to act as an Issuer Bank’ available on website of SEBI;
3) The total length of the UPI ID does not exceed 45 characters.

UPI as part of bidding
4.1. Investor will fill in the bid details in the application form as per the existing process along with his UPI id i.e. use only his/her own bank account linked UPI ID with application.
4.2. As per the existing process,investor may submit the application with any of the intermediary (Syndicate Member / Registered Stock Brokers / Registrar and Transfer Agents / Depository Participants),who, on receipt of application will upload the bid details along with UPI id in the stock exchange bidding platform.
4.3. The stock exchange will electronically share the bid details along with investors UPI id, with the Escrow/Sponsor Bank appointed by the issuer company. UPI as part of blocking
4.4. The Escrow / Sponsor Bank will initiate a mandate request on the investor i.e. request the investor to authorize blocking of funds equivalent to applicant amount and subsequent debit of funds in case of allotment.
4.5. The request raised by the Escrow/Sponsor Bank, would be electronically received by the investor as SMS/intimation on his / her bank provided mobile no. linked to UPI ID.
4.6. Upon validation of block request by the investor, the said information would be electronically received by the investors’ bank, where the funds, equivalent to application amount, would get blocked in investors account. Intimation regarding confirmation of such block of funds in investors account would also be received by the investor.
UPI as part of payment for shares post allocation process 4.7. The registrar to the issue, based on information of bidding and blocking received from stock exchange, would undertake reconciliation and prepare the basis of allotment.
4.8. Upon approval of such basis the instructions would be sent to sponsor bank to credit funds in the public issue escrow account and unblock the excess money in the investors account.
4.9. Based on authorisation given by investor using UPI at the time of blocking, the funds would be debited from investors account

UPI as a payment mechanism for IPOs is applicable in all IPOs for which Red Herring Prospectus is filed after January 01, 2019.

The applicability of UPI as a payment mechanism has been prescribed in a Phased manner as under:
7.1. Phase I: From January 01, 2019, the UPI mechanism for retail individual investors through intermediaries will be made effective along with the existing process and existing timeline of T+6 days. The same will continue, for a period of 3 months or floating of 5 main board public issues, whichever is later.
7.2. Phase II: Thereafter, for applications by retail individual investors through intermediaries, the existing process of physical movement of forms from intermediaries to Self-Certified Syndicate Banks (SCSBs) for blocking of funds will be discontinued and only the UPI mechanism with existing timeline of T+6 days will continue, for a period of 3 months or floating of 5 main board public issues, whichever is later.
7.3. Phase III: Subsequently, final reduced timeline will be made effective using the UPI mechanism.