SEBI has mandated that covered intermediaries use validated ‘@valid’ UPI IDs and QR codes starting October 1, 2025. This initiative aims to strengthen investor payment verification and mitigate fraud within financial transactions.
Introduction of Validated UPI IDs
The Securities and Exchange Board of India (SEBI) has made a significant move by mandating the use of validated ‘@valid’ UPI handles and QR codes by intermediaries. This rule is set to take effect on October 1, 2025, and is aimed at enhancing the verification processes related to investor payments.
Rationale Behind the Mandate
This requirement stems from the rising concerns regarding payment fraud in the securities markets. By enforcing the use of validated UPI IDs, SEBI intends to add a layer of security that protects investors and promotes transparency in financial transactions.
The introduction of this new protocol ensures that each transaction can be tracked and verified, thereby reducing the chances of fraudulent activities. Intermediaries are now tasked with ensuring compliance with this regulation, which includes updating their systems to incorporate these validated payment methods.
“This step will significantly enhance the safety of investor transactions,” noted a SEBI official.
Financial intermediaries should prepare for these changes by implementing the necessary updates to their payment systems and educating their clients about the new UPI requirements to ensure smooth compliance by the deadline.
Citations
- SEBI UPI Mandate (2026) SEBI
