CURRENT AFFAIRS : BANKING & FINANCE
NPCI set to Introduce UPI for secondary market from Jan 1, 2024
- The National Payments Corporation of India (NPCI) is set to kick off an Application Supported by Blocked Amount (ASBA)-like facility in the secondary market from January 1, 2024.
Key Highlights :
- The Unified Payments Interface (UPI) for the secondary market will start its beta phase next week for the equity cash segment.
- It will be supported by key stakeholders, including clearing corporations, stock exchanges, depositories, stockbrokers, banks, and UPI app providers.
- 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 this facility.
- Further, HDFC Bank, HSBC, ICICI Bank, and Yes Bank are sponsor banks for the clearing corporation and exchanges.
- Other stakeholders, including stockbrokers such as Zerodha, banks like Axis Bank and Yes Bank, and UPI apps like Paytm and PhonePe are in the certification stage and set to participate in beta launch soon.
- The facility will enable investors to block funds in their bank accounts for secondary market trading rather than transferring the funds upfront to the trading member.
- The offering will be rolled out by integrating the UPI mandate service of single block and multiple debits with the secondary market trading.
- NPCI added that the ‘beta phase’ of the service will initially be available for a limited set of users.
