back Back

NPCI brings UPI for Secondary Market to diversify its offerings

By Gloria Mathias

January 02, 2024

  • Axis
  • Banks
  • BHIM UPI App
Share

NPCI, Payments Offerings, Fintech news, Fintech solutions, UPI, Secondary Markets, Trading process payments, Transactions Solutions, India, UPI, RBI, SEBI, HDFC, Axis, YES Bank, Groww, The National Payments Corporation of India (NPCI) has introduced a new facility for trading in the stock market. This facility is like the Application Supported by Blocked Amount (ASBA) but is designed specifically for the secondary market.

It is based on a block mechanism approved by the Securities and Exchange Board of India (SEBI). The concept is inspired by the Reserve Bank of India (RBI)-approved facilities of single-block and multiple-debit used in UPI transactions.

Starting January 1, 2024, investors can use this facility to trade in the stock market. It involves blocking a certain amount of funds for trading, ensuring that the investor has sufficient funds available. This helps streamline and secure the trading process, making it more efficient and in line with regulatory standards.

The launch of ‘UPI for Secondary Market’ is set to commence next week in its beta phase for the equity cash segment, with the collaborative support of key stakeholders including clearing corporations, stock exchanges, depositories, stockbrokers, banks, and UPI app providers. Initially, this functionality will be available for a limited set of pilot customers.

During this pilot, investors can block funds in their bank accounts, which 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. This Beta launch is facilitated by Groww as the brokerage app, alongside BHIM, Groww, and YES PAY NEXT as UPI apps. Initially, HDFC Bank and ICICI Bank customers will be able to avail of this facility. Further, HDFC Bank, HSBC, ICICI Bank, and Yes Bank are acting as sponsor banks for the clearing corporation and exchanges.

Other stakeholders, including stockbrokers such as Zerodha, customer banks like Axis Bank and Yes Bank, and UPI-enabled apps like Paytm and PhonePe, are in the certification stage and set to participate in the beta launch soon.

NPCI is focused on making progress in retail payment systems using technology and is working to transform India into a digital economy

Previous Article

January 02, 2024

Financial Advisory Platform Cashvisory raises $144k in Pre-Seed Round

Read More
Next Article

January 02, 2024

BNY Mellon migrates to Proxymity’s fully digital proxy voting service

Read More








IBSi Daily News Analysis

Fraud

February 23, 2024

Axis

Regulated firms battle surge in financial crime attempts, research reveals

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

February 23, 2024

Intellect unveils ‘First Principles’ technology suite, eMACH.ai, for bankers in the Middle East and Africa

Read More

February 23, 2024

Crédit Agricole du Maroc tap Entrust to boost digital payment offerings

Read More

February 23, 2024

Ebury and Nium team to offer cross-border payments in Brazil

Read More

Related Reports

Sales League Table Report 2023
Know More
Global Digital Banking Vendor & Landscape Report Q4 2023
Know More
Wealth Management & Private Banking Systems Report Q4 2023
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q4 2023
Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
close-link
Get your copy now! IBSi Sales League Table 2023