What is UPI in IPO?

UPI or Unified payment interface is an instant payment system. It allows the instant transfer of funds between two bank accounts using a payment address which uniquely identifies a person's bank account. SEBI has made mandatory for retail investors to use the UPI Mechanism for applying in IPO from July 1st, 2019. Investors applying in an IPO using Retail & Shareholder Category for bid value amounting to Rs 2 Lacs and below has to apply using UPI payment options. The earlier ASBA payment option to block the funds is no more available to the customers.