SEBI mandates use of Standardised UPI IDs [Read Circular]

The Securities and Exchange Board of India (SEBI) today issued a landmark circular mandating the adoption of standardised, validated and exclusive Unified Payments Interface (UPI) IDs for all payment collections by SEBI-registered investor-facing intermediaries. The move, for better payment security and investor confidence, comes into effect on October 1, 2025.

Under the new framework, every intermediary—from stock brokers and mutual funds to portfolio managers—must generate a bespoke UPI ID using a SEBI-provided utility. Each UPI ID will consist of an alphanumeric username suffixed by an abbreviation denoting the intermediary’s type (for example, “.brk” for brokers or “.mf” for mutual funds), followed by the handle “@valid” and the bank name (e.g., abc.brk@validhdfc) . This structured format is designed to make it immediately clear to investors that funds are being directed to authenticated entities.

The initiative, borne out of extensive consultations with the National Payments Corporation ofIndia (NPCI) and self-certified syndicate banks, aims to eliminate the risk of misdirected or fraudulent payments. SEBI’s “SEBI Check” functionality will allow investors to verify UPI IDs and associated bank account details either by scanning QR codes or entering the UPI address manually on the SI portal . A green “thumbs-up” icon within a triangle will visually reinforce validation on both confirmation screens and QR codes.

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SEBI has set clear timelines for implementation. Syndicate banks have 30 days from the date of the circular to request login credentials from SEBI, and must complete necessary system changes within 75 days. Market infrastructure institutions and intermediaries have until 60 days for portal updates, with full allocation of UPI IDs to occur by 90 days. Traditional UPI handles will be phased out over 180 days, although existing mutual fund SIP mandates may continue on old IDs to prevent investor inconvenience .

Transaction limits for capital market UPI payments will align with NPCI’s existing retail thresholds, currently capped at ₹5 lakh per day subject to periodic review . Intermediaries are also required to actively promote the new mechanism through SMS, email, social media, and website FAQs, with generic communication templates and educational material provided in the circular’s annexures.

Smaller intermediaries have expressed concerns about the technical and operational challenges of integrating the new system within the stipulated timeframes.

With less than four months until the go-live date, SEBI and NPCI are expected to aid and guide in meeting compliance requirements.

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