The use of Unified Payments Interface (UPI) in public offers was introduced in Novermber 2018 with effect from July 01, 2019.
In December 2021, the National Payments Corporation of India (NPCI) increased the per transaction limit for UPI from ₹2 lakhs to ₹5 lakhs for UPI based Application Supported by Blocked Amount (ASBA) in Initial Public Offers (IPOs).
In March 2022, the NPCI conducted system audits across various market intermediaries and found that more than 80% of these market players are ready to accept the increased limit.
SEBI revised the bid limit from ₹2 lakhs to ₹5 lakhs for UPI- based ASBA in IPOs that will open on or after May 01, 2022.
SEBI has stated that all retail investors applying in Public Issues where the application amount is up to ₹5 Lakhs shall use UPI and also provide their UPI ID in bid- cum-application form to be submitted with any of the following entities: