UPI Mandate for IPO: Meaning, Process & Approval Guide

Applying for an IPO has been made more convenient thanks to the use of the UPI application process. Approving the UPI mandate for IPO application is one of the key processes involved. The mandate allows your bank to block off the necessary amount from your bank account until the IPO allocation process is over. By understanding the UPI mandate for IPO, an investor will be able to avoid any difficulties with the application. Keep reading! 

What is UPI Mandate for IPO?

UPI mandate for IPO functions through the blockage of the necessary application amount in your bank account till the time the process of allotment is finished. In order to know more about the concept, it is essential that you look at the mandate amount where you will get an idea about how and for what purpose the funds get authorized and blocked. 

The fund locking is done till the time when the allotment is finalized, where in case of allotment, the locked funds get debited, and in case of no allotment, the funds are unlocked. The use of the UPI mandate for IPO applications is quite prevalent among retail investors who apply through online mediums.

Why UPI Mandate is Required?

The UPI mandate for IPO provides a safe method to ensure that applicants have sufficient funds at their disposal when applying for an IPO.

The key points supporting this requirement are listed below:

• Money will be available during the application process.
• No initial payments are required.
• No chances of invalid applications.
• The IPO application process becomes easier for individual customers.
• It is a safer and secure means of payment.

UPI mandate makes the process of investing in IPO easy and hassle-free.

How UPI Mandate Works?

UPI Mandate for IPO has a simple process: 

• Submit an IPO applicatio through a broker or investment app.
• Provide your UPI ID while filling the IPO application form.
• Receive mandate request on your UPI IPO application.
• Check and approve mandate request.
• Amount applied in your IPO application gets blocked from your bank account.
• Once allotted, the amount will get deducted if there are allotments of shares.
• If there are no allotments of shares, then the blocked amount gets refunded.

It is necessary to approve the mandate request within a stipulated time period, failing which your IPO application becomes invalid. UPI mandate approval happens to be the most crucial part of the process of filing IPO applications. New investors can find out all details about the process of filling up an IPO by referring to how to apply for an IPO?.

Steps to Approve Your IPO Mandate on Google Pay

The process of Google Pay IPO mandates is as follows:

• Step 1. Open Google Pay and go to the Profile or Settings section.
• Step 2. Check the One-time Mandate or Autopay option under UPI settings. Pending IPO mandates appear here.
• Step 3. Open the IPO mandate, review the details such as amount, IPO name, and broker UPI ID, and select Accept.
• Step 4. Enter your UPI PIN to approve the mandate and wait for the confirmation message.

Note: If the mandate does not appear in Autopay, check out your Notifications, as some mandate alerts show up there.

Steps to Approve Your IPO Mandate on PhonePe

The process of the IPO mandate on PhonePe is as follows:

• Step 1. Open PhonePe and check if there is a pop-up notification for the IPO mandate. If you cannot see it, tap the Notifications bell icon.
• Step 2. Go to Autopay or Pending Request to find the IPO mandate.
• Step 3. Review the IPO name, blocked amount, and other details, then click Approve.
• Step 4. Enter your UPI PIN to complete the process. Approved mandates appear under Completed or Active Autopay.

Note: Maintain a stable internet connection so that mandate alerts are received on time.

Steps to Approve Your IPO Mandate on BHIM

The process of IPO mandate on BHIM is as follows:

• Step 1. Open the BHIM app and sign in using a UPI PIN or biometric authentication.
• Step 2. Select Mandates or UPI Autopay on the homepage to view pending IPO mandates.
• Step 3. Review the mandate details, including the IPO name, amount, UPI ID, and validity period.
• Step 4. Select Approve, enter the UPI PIN, and confirm. The mandate status changes to Active once approved.

Note: If you do not see the mandate, please wait up to 24 hours before reaching out to support. Please make sure your app is updated and that your bank account has sufficient funds

Important Rules for IPO Mandate

Some of the key considerations investors should have in mind while using a UPI mandate for IPO are:

• The UPI ID must be linked to the person applying for the IPO.
• There must be enough balance in the bank account.
• The mandate request must be approved before the deadline of IPO.
• The details provided in the application form must match the bank account details.
• There is a possibility that multiple applications under one PAN card will not get approved.

Adhering to these considerations may help prevent any failure in applications.

UPI Mandate Limit for IPO

Applications for IPO through UPI up to certain prescribed limits are allowed by the National Payments Corporation of India (NPCI). Investors must ensure that they have information on the current limit through their broker/bank or the UPI application.

If the amount exceeds the limit, it is allowed via UPI; other modes like ASBA through the bank account can be used.

It is always advisable to check the UPI mandate for IPO limits before applying.

Advantages of UPI Mandate

The UPI mandate for IPO  provides many advantages for investors:

• IPO application procedure is quick and seamless.
• Investors’ funds stay with them until the shares are allotted.
• Authorization is done using UPI applications in a secure way.
• Approval and processing time are reduced.
• Minimal documentation.
• Accessible through smartphones and internet-based platforms.

Many retail investors prefer UPID due to these features.

UPI Mandate vs ASBA

While both UPI Mandate and ASBA are used in applying for IPOs, there is a difference in terms of the application.

The blocking of funds will remain intact until the completion of the allotment process. The UPI mandate for IPO is easier compared to the ASBA process and hence better for retail investors.

Conclusion

Understanding how to find and approve a UPI mandate helps ensure a smooth IPO application. This process can be done through various apps such as Google Pay, PhonePe, or BHIM easily. Ensure you follow the right steps, enter the correct UPI details, and approve the mandate within the valid time.  Additionally, you can use a trading app to track your IPO application.