Banking Awareness

SEBI Approved Paytm UPI: To Enable Payment for IPO Applications

SEBI Approved Paytm UPI: The SEBI Approved Paytm UPI(Unified Payments Interface) handle to enable payment mandates for initial public offerings (IPO) application. Securities and Exchange Board of India has approved Paytm to enable fast and seamless payment mandates for Initial Public Offering (IPO). It will benefit millions of od users who are investing in capital markets through various brokerage platforms through the Paytm UPI handle.

Paytm Payments Bank has entered into a partnership with Paytm Money to enable payment mandates for IPO applications which is possible when SEBI Approved Paytm UPI Handle. Paytm Money, Paytm’s stocks and mutual fund investment platform, aims to get more than 10 million users and 75 million yearly transactions in the coming financial year. Details regarding SEBI Approved Paytm UPI are given below in this article.

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SEBI Approved Paytm UPI: PPBL Key points:

  • As per the latest National Payments Corporation of India (NPCL) Report, Paytm payments bank 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.
  • 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.

SEBI Approved Paytm UPI: Paytm Announced:

“By enabling @paytm UPI to apply for IPO we are giving millions of investors the ease of seamless, secure, and rapid payments to help enhance their financial portfolio. We believe that every Indian has a right to access capital markets and benefit from the burgeoning list of successful companies which are listing in the stock market,” said Satish Gupta, MD, and CEO – Paytm Payments Bank Ltd.

About UPI (Unified Payments Interface):

  • It is an instant real-time payment system developed by the National Payments Corporation of India on April 11, 2016, to facilitate interbank transactions.
  • UPI 2.0 was released on 16 August 2018 to enable 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:

The daily maximum transfer limit is Rs.1 Lakh. The upper limit varies from bank to bank.

About Paytm Payments Bank:

How is a Payments Bank different from a conventional bank?

Payments Bank is a new bank model visualized by the Reserve Bank of India. As a Payments Bank, Paytm can now accept customer deposits up to Rs. 1 lakh per customer in a savings or current account and offer other banking services like Debit Cards, Online Banking, and Mobile Banking.

Payments Banks can not offer financial products of their own, but partner with other banks.

About Paytm money:

Paytm Money is a SEBI registered stockbroker and an Investment Advisor. The company has a depository participant membership of CDSL and is also a member of NSE and BSE. Paytm Money initially started as a direct mutual fund investment platform.

Key Highlights of Paytm Money:

  • Free Equity Delivery trading.
  • Zero commission direct mutual funds.
  • The maximum brokerage charged per trade is Rs 10.
  • Zero maintenance charges.
  • Fully digital account opening.
  • Feature to switch external regular mutual fund to direct mutual fund.

FAQ:

Q. What are the services offered by Paytm Payments Bank?

Paytm Payments Bank is offering savings and current accounts with a debit card and the ability to make fast and easy payments. It will soon enable you to access a range of financial services such as Insurance, Loans, Mutual Funds offered by our partner banks with the seamless Paytm experience.

Q. How can I open my account?

Currently, we are inviting limited users to open an account with Paytm Payments Bank. You can request an invite using paytmpaymentsbank.com or the latest Paytm app.

Q.What is UPI and how it works?
UPI stands for Unified Payment Interface (UPI). It allows the transfer of money from one bank account to another instantly via one’s mobile phone. Payments can be made via an app on mobile devices only. The money transfer via UPI works on a 24×7 basis.

Q.What are UPI ID and PIN?

UPI ID is a unique identification for a bank account that can be used to send and receive funds. UPI PIN is a 4-digit personal identification number that must be entered to authorize the transfer of money via UPI.