[the_ad id="83613"]

Banks receive over 19 lakh UPI IPO applications in June

Remitter banks in India received over 19 lakh or 1.95 million IPO applications or mandates created that have chosen UPI as the payment option while filling the application in June, data released by the National Payments Corporation of India shows.

According to NPCI, mandate creation means a transaction where the customer has created a successful block of amount in the bank account for an IPO application.

State Bank of India was among the top five remitter banks with 4,86,555 IPO applications approved and 84.63% approval rate through UPI in June. HDFC Bank was second followed by ICICI, Bank of Baroda and Axis Bank.

This is the first time NPCI has released this data after SEBI gave approval for IPO applications requests via UPI in 2019. The approval was given to reduce the time period between closing of an IPO and listing of the security from six working days to just three working days.

The NPCI data further showed that out of 1.95 million UPI IPO mandates, 3,30,478 or 3.3 lakh have been executed or processed by the remitter banks in the last month. This essentially means that close to 17% of applicants who applied for an IPO have been allotted shares for which the funds were debited from their account.

Earlier this year, Paytm Payments Bank had also entered into a partnership with Paytm Money to enable payment mandates for IPO applications. The Noida-based firm also got approval from SEBI to make the @paytm UPI handle a payment option for any IPO application.

While the number of applications allotted shares with UPI as the payment mode was low, this is a good sign for the digital payments railroad which has become one of the most favoured payments options for retail investors.

And with so many blockbuster IPOs lined up this year, investor interest is all set to go up. According to NSE data, the total number of retail investors in June 2021 stood at 211,95,583 – a 41.30% jump from June 2020.

About Author

Entrackr is a new age media platform for entrepreneurs, startups and technology enthusiast Read More >

©️ All rights reserved Bareback Media Pvt. Ltd.

Send Suggestions or Tips