PhonePe Enables IPO Applications Via UPI

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PhonePe Enables IPO Applications Via UPI:

Users to participate in IPOs using their BHIM UPI Id created on its app

In July, NPCI had mandated retail investors to use UPI for IPO applications under ASBA

ASBA in simple terms is an escrow-like mechanism

Digital payments platform PhonePe, has announced that it now enables users to participate in IPOs using their BHIM UPI Id created on its app.

“Users on PhonePe will now be able to use their UPI ID created on PhonePe to apply for an IPO thereby making the complete application process simpler and faster. We look forward to working with NPCI and SEBI in promoting UPI for all the upcoming IPOs and driving more digital adoption,” Hemant Gala, head, payments and financial services at PhonePe, said.

With this launch, PhonePe users can participate in forthcoming IPO’s in 3 steps:

1. Put their UPI ID in the IPO form and submit it.

2. Approve the notification in the PhonePe app to block the amount for the IPO. On allotment of the shares, the money is automatically debited from this blocked amount.

3. Get the IPO application process completed in three days from the current six days.

“The new process has made applying for IPO extremely convenient for retail investors by increasing efficiency, eliminating the need for manual intervention and logistics at various stages,” Praveena Rai, chief operating officer, NPCI, said.

According to the company, this makes PhonePe the first non-banking app to enable IPO applications through UPI.

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