Stock market regulator: SEBI has proposed ‘Pay Right’ for secure Unified Payments Interface (UPI) payments to registered intermediaries. The proposal also talks about increasing the daily payment limit from two to five lakhs.
Market regulator SEBI has proposed a new system ‘Pay Right’ to ensure safe and efficient payments in the securities market through Unified Payments Interface (UPI). SEBI has suggested registered market intermediaries to create a unique alphanumeric UPI ID. This will make it easier for investors to confirm that they are making payments only to registered entities.
SEBI has also proposed to increase the UPI payment limit for capital market transactions from Rs 2 lakh to Rs 5 lakh per day. It will be evaluated from time to time in consultation with NPCI. SEBI has sought public comments on these proposals by February 21. SEBI has implemented UPI as a mode of payment in the market since 2019. However, cases of unregistered entities misleading investors and collecting money fraudulently are increasing. To solve this problem, it has been proposed to create a special alphanumeric UPI ID. This will help investors to identify, isolate and avoid unregistered entities that will not have access to this specific UPI handle.
Green thumbs up symbol will appear on payments
According to SEBI’s proposal, a special ‘thumbs up’ symbol will appear inside a green triangle when payments are made to verified intermediaries. If the symbol is missing, it will warn investors about the potential risks of making payments to unauthorized entities. The cost of implementation of this system is expected to be low, as it involves collaboration between SEBI, NPCI, banks and registered intermediaries.
‘Pay Right’ will strengthen investor confidence… SEBI chief said about the ‘Pay Right’ initiative that it will enable investors to verify the authenticity of the UPI ID on which they are transferring money through strong KYC. This measure has been designed to deal with the growing threat of digital fraud.
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