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SEBI Launches Verified UPI System to Protect Investors
- Starting October 1, 2025, SEBI will introduce a verified UPI payment system for all registered market intermediaries.
- The initiative is designed to enhance investor safety and prevent fraudulent transactions.
- It introduces standardized UPI handles ending with “@valid” for official use by intermediaries.
- A new tool named SEBI Check will be launched to enable investors to confirm the legitimacy of UPI handles.
- The system ensures that only genuine SEBI-registered entities can receive investor funds through UPI.
Verified UPI Handles
- Format & Identification
Each SEBI-registered intermediary (brokers, mutual funds, advisors, etc.) will now use a UPI handle structured as:
<name>.<category>@valid<BankName>
- Example: brk@validHDFC for brokers, xyz.mf@validICICI for mutual funds.
- During transactions, these UPI IDs will display a green triangle with a thumbs-up icon, acting as a visual cue of authenticity.
- Issuance & Oversight
- Issuing Authority: Verified UPI handles will be issued by NPCI through self-certified syndicate banks.
- Eligibility Check: Only entities registered with SEBI will be eligible to receive these handles.
- Mandatory Onboarding: Around 8,000–9,000 intermediaries must be onboarded before the official rollout.
- Transition Deadline: Existing UPI handles will remain valid only until mid‑December 2025.
The SEBI Check Tool
- Purpose & Functionality
- UPI Verification: Enables investors to confirm the authenticity of UPI handles prior to making any payments.
- Dual Access: Supports both QR code scanning and manual entry of UPI ID.
- Bank Match: Confirms the UPI’s linked bank details, including account holder’s name and IFSC code.
- Registry Check: Cross-verifies information against SEBI’s official intermediary database.
- Availability
- Launch Date: Goes live on October 1, 2025.
- Platform Access: Available on trusted platforms approved by SEBI.
- Fraud Prevention: Designed to prevent scams like fake apps and deepfake identity fraud.
Implementation Timeline
- Launch Date: October 1, 2025 .
- Transition Period: Until December 8–11, 2025, allowing intermediaries to accept both old and new UPI IDs.
- Mandatory Phase: After this period, UPI transactions will only be accepted via verified handles—with old ones deactivated for new SIPs and payments.
Transaction & Payment Options
- UPI Transaction Limit: SEBI has maintained the daily transaction cap of ₹5 lakh for capital market activities conducted through UPI.
- NPCI Framework: This limit aligns with NPCI’s permitted range of ₹2–5 lakh.
- Alternate Methods: Investors may still use IMPS, NEFT, RTGS, or cheque for payments.
- Mandatory Verified UPI: Post-rollout, only verified UPI handles can be used for UPI payments.
Key Benefits for Investors
- Fraud reduction: Verified handles with badges prevent payments to impostors.
- Visual trust signals: The green thumbs-up logo offers instant confirmation.
- Proactive verification: SEBI Check enables investors to verify the authenticity of UPI handles before making any payment.
- Simplified large transactions: ₹5 lakh cap supports high-value trades like IPOs/SIPs without friction.
- System-wide standardisation: Uniform UPI handles across intermediaries enhance transparency and interoperability.
Important Questions
- What is the purpose of SEBI’s new verified UPI handle system for market intermediaries starting from October 1, 2025?
- How are the newly introduced verified UPI handles structured under SEBI’s guidelines, and what does the “@valid” suffix signify?
- What is the SEBI Check tool, and in what way does it assist investors in verifying a UPI handle’s authenticity prior to making a payment?
- What is the deadline after which old UPI handles will no longer be valid for investor transactions under SEBI’s new system?
- What key safety features have been added in SEBI’s verified UPI system to protect investors from fraud and fake intermediaries?
Conclusion
SEBI’s verified UPI initiative—with standardized “@valid” handles, trusty green badges, and the SEBI Check tool—marks a powerful shift toward safer, more transparent digital payments in India’s securities markets, building investor trust and paving the way for more secure capital-market engagement.
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