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SEBI approved Paytm UPI handle to enable payment mandated for IPO applications 

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Sebi approves Paytm UPI handle for IPO applicationsOn March 16, 2021, The Securities and Exchange Board of India(SEBI) has approved Paytm UPI handle to enable fast and seamless payment mandates for Initial Public Offering (IPO) applications to benefit millions of users to invest in capital markets through various brokerage platforms using them @Paytm UPI Handle.

  • As per the latest National Payments Corporation of India (NPCI) report, Paytm Payments Bank (PPBL) registers the lowest technical decline rate of 0.02% as compared to all UPI remitter banks and 0.04% as compared to all UPI beneficiary banks
  • Similar to Paytm Money, @Paytm UPI will soon be activated across all brokerage platforms

Key Points:

  • PPBL has entered into a partnership with Paytm Money to enable payment mandates for IPO applications.
  • It aims to open over 3.5 lakh demat accounts by year-end and expects 60% of users to be from small cities.
  • Paytm had registered the lowest technical decline rate of 0.05 per cent in January 2021 among other UPI remitter banks.

Paytm Money is aiming to bring 10 million Indians to equity markets by the financial year 2022.

Note – PPBL is the largest UPI beneficiary bank and has one of the best technology infrastructures for processing UPI transactions.

About Unified Payments Interface (UPI):

  • It is an instant real-time payment system developed by the National Payments Corporation of India (NPCI) on 11 April 2016 to facilitate inter-bank transactions.
  • On 16 August 2018, UPI 2.0 was launched which enabled users to link their Overdraft accounts to a UPI handle.
  • The interface is regulated by the RBI and works by instantly transferring funds between two bank accounts on a mobile device.
  • UPI uses IMPS (Immediate Payment Service) for transferring funds from one account to another.
  • Virtual Payment Address (VPA) is a unique ID that enables registered UPI users to send and receive money without entering additional bank account details.

Money Transfer limits on UPI:

Daily Maximum Transfer Limit is Rs.1 Lakh. The upper limit varies from bank to bank.

Recent Related News:

The ‘UPI Ecosystem Statistics’- November 2020 of National Payments Corporation of India (NPCI), has released Unified Payments Interface(UPI) Top 30 Banks Performance (for Remitter Banks and Beneficiary Bank). The State Bank of India(SBI) secured the top spot in UPI Transaction among the UPI Remitter Banks with 607.92 million transactions.

The list is followed by Axis Bank (241.92 million transactions), HDFC Bank (179.40 million transactions), and Paytm Payments Bank ltd- PPBL(169.25 million transactions).

About Paytm(pay through mobile) and its launches over years:

Founded in August 2010 by Vijay Shekhar Sharma in Noida, New Delhi as a prepaid mobile and DTH recharge platform.

MD & CEO of Paytm Payments Bank – Satish Gupta.

  • November 2017 – Paytm Payments Bank
  • March 2018 – Paytm Money
  • May 2019 -Paytm partnered with Citibank to launch Paytm First credit card
  • July 2020 –  Partnered with Tata Starbucks allowing its customers to order food online during COVID-19.