If applying for an IPO via Net Banking is the Classic way, then applying via UPI (Unified Payments Interface) is the Modern way. It is fast, mobile-friendly, and has become the primary method for millions of retail investors in India. Instead of navigating through complex bank portals, you can simply use your favorite payment app like Google Pay, PhonePe, or BHIM to block your funds.

In 2026, the process is smoother than ever. The NPCI (National Payments Corporation of India) and SEBI have worked together to ensure that once you place a bid on your broker's app, the payment request reaches your phone almost instantly. For a retail investor, this one-click experience makes participating in the stock market as easy as paying for a cup of tea.

Begin your journey with a hassle-free Demat account

The 7-Step UPI Application Process

Applying for an IPO using your UPI ID is a two-part journey: first on your broker's app and then on your UPI app.

Open your trading app (e.g., Motilal Oswal RIISE). Navigate to the IPO or Invest section. You will see a list of Current or Open IPOs.

2. Enter Your Bid Details

Select the IPO you want to apply for. Enter the Number of Lots and always tick the Cut-off Price box to ensure your bid is valid at the final discovered price.

3. Enter Your UPI ID

The app will ask for your UPI ID (e.g., yourname@okhdfcbank or mobilenumber@ybl).

Important: Ensure the bank account linked to this UPI ID is in your name and has the same PAN card as your Demat account.

4. Receive the Mandate Notification

Once you submit the bid, the exchange sends a request to your UPI app. You will receive a push notification on your phone saying, IPO Mandate Request Received.

Note: Sometimes this request can take 2-6 hours on the first day of a busy IPO.

5. Approve the Mandate

Open your UPI app (GPay, PhonePe, etc.) and go to the Mandates or Autopay section. Review the details (Company Name and Amount). Click Approve and enter your UPI PIN.

6. Funds are Blocked

Your bank will immediately send you an SMS saying the amount (e.g., ₹14,800) has been blocked. This money is not deducted; it remains in your account, earning interest, but you cannot spend it.

7. Bid Confirmation

Your broker app will update your status to Bid Uploaded to Exchange. This confirms your application is officially in the lottery pool.

UPI App Mandate Locations (Where to Find Them?)

If you miss the notification, you can find the pending request here:

Google Pay: Profile (Top Right) $\rightarrow$ Mandates.
PhonePe: Profile (Top Left) $\rightarrow$ Payments Management $\rightarrow$ Autopay/Mandates.
Paytm: Search for IPO in the search bar $\rightarrow$ My Applications $\rightarrow$ Pending Mandates.
BHIM: IPO Section $\rightarrow$ Pending Requests.

Comparison: UPI vs. Net Banking (ASBA)

Feature

UPI Application

Net Banking (ASBA)

Max Investment (2026)

₹5,00,000

No Upper Limit

Ease of Use

Very High (Smartphone)

Moderate (Requires Login)

Success Rate

High (Depends on App)

Highest (Direct Bank Link)

Best For

Retail Investors

HNIs & Large Bids

Refund Speed

Instant Unblocking

1-2 Days for Unblocking

Pro-Tips for a Successful UPI Bid

The PAN Match Rule: Never use your friend's or relative's UPI ID to apply for an IPO in your name. SEBI will reject the application because the PAN card on the bank account must match the PAN on the Demat account.
The 5 PM Deadline: On the final day of the IPO, you must approve your UPI mandate before 5:00 PM. If you approve it at 5:01 PM, your application is dead.
Avoid Last Hour Bidding: UPI servers often get slow on the last day due to heavy traffic. Always try to finish your application by Day 2 or the morning of Day 3.

Frequently Asked Questions (FAQs)

What is the UPI limit for IPOs in 2026?

As of 2026, the per-transaction limit for IPOs through UPI has been increased to ₹5,00,000. This allows you to apply in both the Retail and Small HNI (sNII) categories via UPI.

Can I use UPI Lite for IPOs?

No. UPI Lite is for small transactions (under ₹500). For IPOs, you must use the standard UPI method with your PIN.

I approved the mandate, but my money isn't deducted. Why?

This is normal! In an IPO, the money is only blocked. It will only be deducted from your account if you are actually Allotted shares.

What if I enter the wrong UPI ID?

The mandate request will never reach your app. You will have to Delete or Modify your application on the broker's app and enter the correct ID.

How do I cancel a UPI-based IPO application?

Go to your broker app and click Cancel Bid. Once done, you must also go to your UPI app and Revoke the mandate to unblock your funds immediately.

My bank doesn't support UPI for IPOs. What do I do?

Most major banks (SBI, HDFC, ICICI, etc.) support it. If yours doesn't, you must use the Net Banking (ASBA) method instead.

Can I apply for two different IPOs using the same UPI ID?

Yes. You can apply for multiple different IPOs. However, you cannot use the same UPI ID/PAN to apply for the same IPO twice.

What if the mandate request doesn't show up for 24 hours?

Delete your application on the broker's app and re-apply with the same or a different UPI ID. Sometimes technical glitches happen at the bank's end.

Do I get interest on the blocked amount?

Yes! This is the best part of UPI/ASBA. Since the money stays in your savings account, your bank continues to pay you interest until the day of allotment.

It is the bank (like HDFC or Axis) that handles the technical link between the stock exchange and your UPI app. You will see their name in the mandate details.

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