UPI mandate for IPO applications, explained

A UPI mandate, in an IPO, is a one-time request to block money in your account for the bid, not a payment. When you submit your bid with your UPI ID, the exchange sends a collect request to that UPI ID. You see it in your UPI app as a pending request. When you approve it with your PIN, the bank blocks the amount. The bid is then valid.

Blocking is different from paying. The money stays in your account, but you cannot spend it until it is released or debited. It is debited only for the shares you are allotted.

1. You place the bid in your broker's app with your UPI ID.
2. A mandate request appears in your UPI app, usually within a minute or two.
3. You check the amount and the IPO name and approve it with your UPI PIN.
4. The bank blocks the amount in your account. The bid status changes to placed or accepted.
5. After allotment, the amount for allotted shares is debited and the rest is unblocked.

Individual investors can apply through UPI for bids up to ₹5 lakh. The limit was raised from ₹2 lakh to ₹5 lakh in 2022. A bid above that goes through the net banking route instead, called ASBA. See what ASBA is.

The mandate has a deadline. If it is not approved before the cut-off time on the last day of bidding, it expires and the bid is not valid. The cut-off time can differ by issue, so use the time shown in your app and the offer document, and approve the request well before it.

• Open the pending or collect requests section of your UPI app. The request may not trigger a notification.
• Check the UPI ID. A typo sends the request to the wrong ID or nowhere. Use the UPI ID as it appears in your own UPI app.
• Check that the handle is accepted. Not every UPI handle is accepted for IPO bids. Broker apps usually say so when you enter it.
• Check that the bank account is yours and active. A joint account or a third party's UPI ID can lead to a rejected bid.
• Wait a few minutes before resubmitting. Submitting the same bid again can create a duplicate that is then rejected.
• Ask your broker. If the request never arrives, their support can see the status of the bid.

After the bidding closes, the registrar finalises the allotment. For allotted shares, the bank debits the amount. For bids that were not allotted, or for part of a bid, the block is removed, usually around two working days after the issue closes, which is the refund date shown on each IPO's Allotment tab. If a block is still there a day or two after that date, contact your broker or bank with the application number.