Buy Stocks Through UPI : With the beginning of the new year, a new facility has also arrived in the stock market. Now you will be able to buy and sell stocks in the stock market through UPI. NPCI has approved the facility of UPI payment for the secondary market from January 1, 2024.
After the launch of the new service, investors will be able to purchase shares by paying through UPI. In this payment, the amount of the purchase of stocks in the stock market will be blocked in your account. For your information, let us tell you that India will be the first country in the world to start buying and selling through UPI in the share market.
National Payments Corporation of India (NPCI) launched Unified Payment Interface i.e. UPI for the secondary market from January 1, 2024. After this, investors will be able to buy shares by paying through UPI. Currently, there is a facility of payment through UPI in IPO bidding.
While applying for IPO, the money gets blocked in the investors’ accounts and when the shares are received, the amount is debited. Similarly, after the introduction of this facility in the secondary market i.e. share market, the amount of money purchased on the purchase of shares will be blocked in the investor’s account. After this, when the settlement takes place on the same day, the money will be debited from the account. India will be the first country in the world to start buying and selling through UPI in the secondary market.
NPCI said that the payment service will be introduced in beta version in collaboration with clearing corporations, stock exchanges, depositories, stockbrokers, banks and UPI app service provider companies. Initially this service will be for limited customers only. This step will increase the speed of transactions and help in same day settlement for stock exchanges in India.
This will be the process
By making payment in the stock market through UPI, the amount of payment for purchasing shares will be blocked in the investor’s account. After this, as soon as the settlement is done, the money will be debited from the investor’s account. According to UPI guidelines, an investor can block a maximum of Rs 5 lakh. The facility to block funds is optional for investors. Stockbroker will provide this facility. If the investor opts for this facility, the broker will share the investor’s account details with the exchanges. BSE and NSE will share that investor’s data with the clearing corporation.