New Delhi: Paytm, operated by One 97 Communications, has unveiled a new feature that allows brokerage applications to block funds directly in users’ bank accounts through its Unified Payments Interface (UPI) service.
In an exchange filing on 4 March, the company announced the launch of UPI Trading Blocks, a feature designed to enhance the convenience and security of stock trading.
With this new system, users can set up automatic payment deductions directly from their bank accounts, eliminating the need to transfer funds to brokerage platforms.
The funds remain in the users’ accounts, continuing to earn interest until an order is executed, at which point the required amount is automatically deducted without requiring a UPI PIN.
The feature operates on the infrastructure of the National Payments Corporation of India (NPCI) and allows traders to manage and track their funds through the Paytm app.
UPI Trading Blocks are part of a broader initiative to streamline app-based equity trading. The mechanism enhances security and efficiency by reducing the risk of fund misuse while ensuring that investors can access their money for immediate trades.
The feature complies with the Securities and Exchange Board of India’s (SEBI) directive mandating UPI Trading Blocks for qualified stock brokers starting 1 February 2025. SEBI had initially introduced the system in beta mode as an optional feature on 1 January 1 last year.
Under this framework, funds remain in bank accounts and are debited only upon trade execution, with a T+1 settlement cycle for payouts.
Paytm’s UPI Trading Blocks, initially available for UPI handles of Axis Bank (@ptaxis) and Yes Bank (@ptyes), will soon extend to SBI (@ptsbi) and HDFC Bank (@pthdfc) according to reports.
The company recently introduced the Receive Money QR Widget for Android and iOS, enabling shopkeepers, freelancers and small businesses to accept payments seamlessly.
Additionally, it has rolled out a coin-drop sound feature for real-time payment notifications. Paytm also supports UPI Lite for small-value transactions, RuPay credit card linking on UPI, and an auto-pay service.
Furthermore, it has extended support for international UPI payments in several countries, including the UAE, Singapore, France, Mauritius, Bhutan, Sri Lanka and Nepal.
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