Safer, Smarter Investing: SEBI Unveils New UPI System for Brokers and Mutual Funds
Starting October 1st, SEBI is rolling out a new UPI handle, @valid, designed exclusively for registered intermediaries such as brokers and mutual funds. This move is aimed at strengthening payment security and ensuring that investors transfer funds only to verified entities. To make the process more user-friendly, a visual verification indicator will accompany these transactions. In addition, SEBI is working on a 'Sebi check' feature that will allow investors to easily confirm the authenticity of a UPI ID before making any payments.
Safer, Smarter Investing: SEBI Unveils New UPI System for Brokers and Mutual Funds
Mumbai – Big news for investors! The Securities and Exchange Board of India (SEBI) is rolling out a brand-new system that promises to make payments to brokers and mutual funds much safer and easier. From now on, all registered financial intermediaries will use a special, verified Unified Payments Interface (UPI) handle, ensuring your money always goes to legitimate entities.
"This innovative mechanism is poised to significantly enhance the safety and accessibility of financial transactions within the securities market," SEBI chairman Tuhin Kanta Pandey shared with reporters in Mumbai, highlighting the creation of a secure and verified payment channel.
This new, dedicated UPI handle, @valid, is set to go live on October 1st.
To give you an idea of how it will work, imagine an intermediary named 'abc' operating as a broker. Their new UPI handle would look something like abc.bkr@validhdfc. This standardized format will make it clear who you're paying.
A small but crucial detail: when you're making a payment to an authorized entity, you'll see a reassuring "thumbs-up inside a green triangle" symbol. This visual cue confirms you're dealing with a verified intermediary. Around 8,000 financial intermediaries are expected to transition to this new system.
SEBI has clarified that while these new UPI IDs are compulsory for intermediaries, investors themselves can continue to use their existing UPI IDs. Good news for those who prefer their current setup!
The existing transaction limit of ₹5 lakh per day for capital market transactions through UPI will also remain unchanged.
But that's not all. To further empower investors, SEBI is actively developing a clever new feature called 'Sebi check'. This upcoming functionality will allow you to quickly verify the authenticity of any UPI ID, either by simply scanning a QR code or by typing in the UPI ID manually. It's all about giving you peace of mind before you make that crucial financial transaction.
