UPI is now all set to revolutionise payments in stock market

NEW DELHI: 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:

UPI payments through credit card: Earlier, UPI payments could be linked to bank accounts, prepaid wallets, overdraft facility. Last year, UPI facilitated payments through credit cards. Several public sector and private banks have already launched this facility on RuPay credit cards. The functionality can be availed through registering the credit card with third party UPI apps. Cardholders can enroll their active primary cards on UPI and make payments to merchants (P2M transactions) using their credit cards. This facility is free for customers. The linking of RuPay credit cards to UPI will ensure that customers will no longer have to carry their credit cards with them at all times for payments.

Recently, IndusInd Bank became the first bank in the country to integrate UPI functionality with a Corporate Credit Card. In a press statement, the bank said: “IndusInd Bank eSvarna credit cardholders can look forward to a luxurious travel experience, including complimentary lounge access and fuel surcharge waiver. Corporate travellers can receive the added benefit of comprehensive travel insurance coverage and an exclusive rewards program meticulously crafted for corporate entities, which makes this credit card a valuable financial solution for various business transactions.”