SEBI has launched the unique UPI ID system for the protection of investors on 11 June 2025. Now registered entities can be validated with a green thumbs-up icon before making payments. This system will prevent fraud and promote secure transactions. Know SEBI check tool and its complete details.
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SEBI new system: In this system, the authenticity of UPI payments can be checked. This unique UPI ID will be for SEBI registered entities, such as brokers and mutual funds. Chairman Tuhin Kanta Pandey said that this system will help investors to ensure that they are making payments to the correct and legitimate institution. This initiative will prevent fraud caused by fake social media claims and false promises of high returns. The system will start soon, but its use will be optional.
In this, the UPI handle will be with a unique name like “@payright” and the name of the bank, such as “abc.bkr@payrighthdfc”. While making payment, a special green thumbs-up icon will appear, which will indicate that the institution is legitimate. If this icon is not visible, investors will be warned to be careful. Earlier in 2019, UPI was introduced as a payment mode in the securities market. Now it has also been proposed to increase the limit of capital market transactions from Rs 2 lakh to Rs 5 lakh per day, which will be reviewed from time to time with NPCI.
New tool for investors
This initiative is named “SEBI Check”, which is a tool to check the validity of UPI handle. This will protect investors from fake entities, which loot funds by luring high returns. According to SEBI, unregistered entities are misleading investors. With this tool, users will be able to confirm KYC-verified UPI ID before making payment. This system will work in collaboration between SEBI, NPCI, banks and registered entities. The cost will be less, as existing bank accounts will be used. SEBI had sought suggestions from the public on this by 21 February 2025.
How will this system work?
Registered entities will be able to get UPI ID from their existing bank accounts. NPCI will give “@payright” handle only to “self-certified syndicate banks”. Banks will verify the entities through OTP on SEBI’s intermediary portal. On making payment, a green thumbs-up icon will appear, which will guarantee validity. If the icon is not visible, investors may be wary of the risk. This system is expected to be fully operational from October 2025. Apart from this, the facility of fee payment to bonafide investment advisors and research analysts will also start through the official website of the regulator.
