What is a UPI ID for an IPO?

A UPI ID for an IPO is a unique virtual payment address used by retail investors to apply for shares. Instead of using traditional banking methods like physical forms, you provide your UPI ID in the IPO application. This initiates a mandate request on your UPI app to block the required funds in your bank account. The money remains in your account but is frozen until the allotment process is complete. If shares are allotted, the amount is debited; otherwise, the funds are unblocked. This system ensures a faster, paperless, and secure investment process.