NPCI to launch UPI for secondary-market on January 1
National Payments Corporation of India (NPCI) will launch the Unified Payment Interface or UPI for the secondary market on January 1, 2024. After this, investors will be able to buy shares by paying through UPI.
Currently, in the bidding of Initial Public Offering i.e. IPO, payment can be made through UPI. When applying for IPO, the money is blocked in the investor’s account and the amount is debited when shares are issued.
Similarly, after the launch of this service in the secondary market i.e. stock market, the amount of stock purchased will be blocked in your account. After this, when the settlement takes place on the same day, the money will be debited from the investors’ account.
NPCI said that the payment service will be introduced in beta version for equity cash segment in collaboration with clearing corporations, stock exchanges, depositories, stockbrokers, banks and UPI app service provider companies. Initially this service will be available to limited customers.
NPCI said that this beta launch is being facilitated by brokerage app ‘Grow’. UPI app service will be available in the secondary market through BHIM, Grow and Yes Pay Next. Initially, customers of HDFC Bank and ICICI Bank will be able to use this service. Apart from this, HDFC Bank, HSBC, ICICI Bank and Yes Bank will act as clearing corporations and sponsor banks for the exchanges.
National Payments Corporation of India was established in 2008
National Payments Corporation of India (NPCI) was established in 2008 to operate retail payments and settlement systems in India. NPCI has established a strong payment and settlement infrastructure in the country. NPCI has changed the way of retail payments through RuPay Card, Immediate Payment Service (IMPS) and Unified Payment Interface (UPI).
