Answer
ASBA stands for “Applications Supported by Blocked Amount.” This is a process developed by SEBI (Securities and Exchange Board of India) in July 2008 for applying to Initial Public Offerings (IPOs), Further Public Offers (FPOs), and Rights Issues.
Under the ASBA system, the application money remains in your savings bank account until the allotment process is completed. The required application amount is blocked in your account, but it is not debited. Only if you receive an allotment of shares is the blocked amount transferred to the issuer’s account. If you do not receive any allotment, the block is simply removed, and the funds become immediately available to you.