Science and Tech
Pilot phase of ‘UPI for secondary market’ to begin from January 1: NPCI
MUMBAI — The National Payments Corporation of India (NPCI) on Friday announced the launch of “UPI for Secondary Market” from January 1 in its Beta phase for the equity cash segment.
The launch of ‘UPI for Secondary Market’ is set to commence next week, with the collaborative support of key stakeholders including clearing corporations, stock exchanges, depositories, stockbrokers, banks, and UPI app providers.
Initially, this functionality will be available for limited set of pilot customers, the NPCI said in a statement.
During this pilot, investors can block funds in their bank accounts, which will only be debited by the Clearing Corporations upon trade confirmation during settlement.
Clearing Corporations will directly process payouts to these clients on a T+1 basis, according to the NPCI.
This Beta launch is facilitated by Groww as the brokerage app, alongside BHIM, Groww, and YES PAY NEXT as UPI apps.
Initially, HDFC Bank and ICICI Bank customers will be able to avail this facility.
Further, HDFC Bank, HSBC, ICICI Bank, and Yes Bank are acting as sponsor banks for the clearing corporation and exchanges, said the NPCI.
Other stakeholders, including stockbrokers such as Zerodha, Customer’s banks like Axis Bank and Yes Bank, and UPI-enabled apps like Paytm and PhonePe are in the certification stage and set to participate in Beta launch soon.