The National Payment Corporation of India (NPCI), in collaboration with brokerage firms and clearing houses, has introduced the ‘UPI for Secondary Market’ in its beta phase starting January 1. This initiative aims to revolutionize stock trading by allowing investors to reserve funds in their bank accounts for purchases, rather than immediately transferring them to the broker. Funds are debited by Clearing Corporations upon trade confirmation during settlement, offering a more efficient transaction process.

While promising, the UPI integration is currently limited to the equity cash segment during the pilot phase, excluding other trading avenues like equity futures and commodities. Support from banks and UPI platforms remains partial, with initial participation from institutions such as HDFC Bank and ICICI Bank. Leading the charge are trading app Groww and UPI platforms like BHIM and YES PAY NEXT.

As the beta phase progresses, investors await the broader implications and benefits of this innovative approach to stock trading. While the initiative holds potential, its full impact and widespread adoption are yet to be realized.”