SEBI UPI ID verification drive launches with SEBI Check tool from October 2025 to prevent investment fraud and secure digital payments for investors.
1. SEBI’s Move Towards Verified UPI IDs
The Securities and Exchange Board of India (SEBI) has announced a major initiative to strengthen investor protection by introducing validated UPI handles for all SEBI-registered market intermediaries. These include brokers, mutual funds, portfolio managers, investment advisors, and others. Each validated handle will end with a unique format, such as abc.brk@validSBI or xyz.mf@validHDFC, clearly signifying legitimacy
2. Implementation Details & Timeline
Effective October 1, 2025, intermediaries must adopt these UPI handles. The National Payments Corporation of India (NPCI) will allocate the handles, while SEBI’s tool—SEBI Check—will let investors scan or manually verify any UPI ID Existing IDs will phase out by late 2025 or early 2026, with a transition period to update systematic payments like SIPs
3. Visual Authentication: The “Green Tick”
To boost investor confidence, verified UPI handles will display a green-triangle “thumbs-up” icon at payment time, reassuring users they’re sending funds to a SEBI-authorised intermediary
4. How SEBI Check Works
Acting as a safety layer, the SEBI Check mobile or web tool allows users to confirm UPI authenticity via QR scanning or manual entry. It also verifies linked bank data—account number and IFSC
5. Broader Implications & Investor Impact
This move is SEBI’s direct response to rampant UPI frauds, phishing attempts, and impersonation of intermediaries. By standardising UPI IDs, enabling in-built verification, and launching SEBI Check, the regulator aims to significantly reduce digital scams and increase trust in stock and mutual fund markets
B) Why This News Is Important
Enhanced Investor Security
With fraudulent UPI handles and phishing schemes on the rise, a regulated and verified system can drastically lower risks. The “thumbs-up” icon and SEBI Check tool ensure investors clearly recognize genuine entities before transferring funds.
Boosts Confidence in Digital Markets
As more retail investors enter capital markets via digital platforms, verified UPI IDs help institutionalise trust in online transactions. This drives broader participation across banking, mutual funds, equities, and government exam-relevant sectors like RBI and SEBI roles.
Exam-Relevant Regulatory Framework
For aspirants targeting roles in finance—banking exams, SEBI, RBI or civil services—understanding this reform is crucial. It showcases SEBI’s proactive regulation, coordination with NPCI, and digital innovation—all vital knowledge for current affairs and governance-focused questions.
C) Historical Context: Regulatory Reforms in Investor Protection
Rise in UPI-Enabled Frauds
In recent years, India has witnessed a surge in UPI-based scams targeting retail investors. Cybercriminals impersonate brokers or advisory firms, duping individuals into transferring funds to fake accounts and disappearing overnight. SEBI’s response follows multiple fraud incidents in 2023–24.
Previous Interventions
SEBI previously tightened KYC norms, imposed stricter broker registration rules, and launched investor education programs. However, the sheer convenience of UPI meant scammers found loopholes. Despite hotter UPI regulation by NPCI (like Rupay safeguards and bank-level monitoring), SEBI’s latest policy marks the first industry-specific approach in securities.
Global Best Practices
Globally, central banks and regulators in advanced economies have implemented “Payee Verification” and mandated standardised merchant IDs. SEBI’s move aligns India’s capital market with demands for authenticated, real-time transactions, mirroring efforts like the UK Faster Payments Resolution service or Singapore’s SGQR unified QR system.
D) Key Takeaways from SEBI’s UPI Validation Drive
| S.No. | Key Takeaway |
|---|---|
| 1 | SEBI has mandated validated UPI handles (e.g., @valid) for all registered intermediaries effective October 1, 2025. |
| 2 | NPCI will assign standardized UPI IDs ending in formats like .brk, .mf, combined with @validBank. |
| 3 | A green‐triangle “thumbs‐up” icon will display during transactions using verified UPI handles. |
| 4 | SEBI Check, a verification tool, lets investors scan or enter UPI IDs to confirm authenticity and bank details. |
| 5 | Existing UPI IDs must be decommissioned by December 2025/early 2026, ensuring compliance while preserving ongoing SIP mandates. |
FAQs: Frequently Asked Questions
1. What is the purpose of SEBI’s new UPI validation initiative?
SEBI aims to curb investment fraud by ensuring that only verified UPI IDs are used by SEBI-registered intermediaries. This move enhances investor trust and security in digital transactions.
2. When will SEBI’s validated UPI handle system come into effect?
The new system will be implemented from October 1, 2025, and existing UPI IDs will be phased out by the end of 2025 or early 2026.
3. What is SEBI Check and how does it work?
SEBI Check is a verification tool developed by SEBI that allows users to manually enter or scan UPI IDs to check the authenticity of payment recipients before transferring funds.
4. How can investors identify a verified UPI handle?
Verified UPI handles will have specific extensions like .brk for brokers or .mf for mutual funds, ending with @validBank. A green triangle thumbs-up icon will also appear during transactions for added authenticity.
5. Will existing systematic investment plans (SIPs) be affected?
SIPs linked to old UPI handles will be gradually transitioned. SEBI has advised intermediaries to assist investors in updating their payment mandates during the transition period.
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