UPI is now all set to revolutionise payments in stock market

UPI for secondary market will change the way investors buy shares as they can block the amount in bank accounts instead of transferring it to broker’s account

- 

THE Unified Payment Interface (UPI), the digital payment system built by the government of India, is now ready to revolutionise the payment system in the Indian stock market.

The National Payment Corporation of India (NPCI) in collaboration with brokerage firms and clearing houses has launched the beta phase of 'UPI for Secondary Market' from 1 January.

UPI for Secondary market is an ASBA (Application Supported by Blocked Amount) like service, where an investor can block their amount used for buying stocks in the secondary market in their bank accounts instead of transferring it to the broker's account.

The amount will only be debited by the Clearing Corporations upon trade confirmation during settlement.

Clearing Corporations will directly process payouts to these clients on a T+1 basis.

Currently, ASBA facility is only limited for buying shares from the primary market, that is, in applying for IPOS. The UPI-enabled ASBA facility will change the way investors buy stocks in the secondary market.

UPI is now touching every aspect of people's lives. It is no longer limited to payments to grocery stores, roadside vegetable vendors or for Uber taxi rides. UPI is growing bigger and better with every passing day. Here's a reminder to people what UPI can do and where all it can be used apart from buying stocks in the secondary market: