SEBI Introduces Validated UPI IDs for Safer Investor Payments

To enhance security and transparency in the securities market, SEBI has rolled out a new framework mandating the use of standardised, validated, and exclusive UPI IDs for all SEBI-registered intermediaries. Here’s everything you need to know:

🔍 Objective of the Initiative

• Ensure secure and verified fund transfers from investors to SEBI-registered intermediaries.
• Provide a structured UPI address mechanism for seamless and safe transactions.
• Enhance investor trust by validating intermediary payment channels.

🧩 Structure of the New UPI ID

• Format: username.suffix@validbankname
  • Example: abc.brk@validhdfc (for a broker named ABC using HDFC Bank)
• Username: Alphanumeric, based on intermediary’s name.
• Suffix: Indicates intermediary type (e.g., brk for brokers, mf for mutual funds).
• Handle: Always starts with @valid followed by the bank name.

✅ Security Features

• A “thumbs-up inside a green triangle” icon will appear on valid UPI IDs.
• Absence of this icon signals potential risk of unauthorized payment.

🏦 Who Can Issue These UPI IDs?

• Only Self-Certified Syndicate Banks (SCSBs) listed in Annexure C.
• No need for new bank accounts; existing ones can be used.

💸 Transaction Limits

• UPI transaction limit for capital market: ₹2–5 lakhs/day.
• Subject to periodic review by SEBI and NPCI.

🔐 SEBI Check Tool

• A new tool to verify UPI IDs and bank details of intermediaries.
• Investors can scan a QR code or manually enter UPI ID for verification.

📌 Responsibilities of Stakeholders

Intermediaries:

• Must obtain and display new UPI IDs.
• Promote awareness via SMS, email, social media, and websites.
• Continue old UPI IDs temporarily; mandatory switch after 180 days.
• SIPs:
  • Ongoing SIPs: Continue with old UPI.
  • New/renewed SIPs: Must use new UPI IDs.

Banks:

• Must verify and issue UPI IDs using SEBI’s utility.
• Ensure due diligence and compliance with NPCI policies.

MIIs & RTAs:

• Update systems to support new UPI framework.
• Promote investor awareness and publish FAQs.

🗓️ Implementation Timeline

📣 Investor Guidelines

• Use new UPI IDs only if opting for UPI payments.
• Look for:
  • Correct intermediary name and suffix.
  • @valid handle with bank name.
  • Green triangle thumbs-up icon.
• No need to change your own UPI ID.

❓ FAQs Highlights

• Mandatory for intermediaries, optional for investors.
• QR code generation is compulsory for intermediaries.
• Same username can be used across banks but must be unique per bank.
• Utility tool must be used for username and QR code generation.

🔗 More Info

Visit SEBI’s official website for full circular and updates. Here is the link of the SEBI circular : SEBI | Adoption of Standardised, Validated and Exclusive UPI IDs for Payment Collection by SEBI Registered Intermediaries from Investors