Answer
Brokers without a banking license offer the Unified Payment Interface option for share applications. The National Payments Corporation of India created this platform under the guidance of the RBI and the Indian Banks Association. This system aims to make retail bank settlements simple across India.
Investors input their unique payment ID into the stock broker software. After this, you get a digital mandate on your mobile net-banking app or the BHIM app. You must log in and approve this request to block your money. This extra confirmation layer makes the process slightly slow. It takes more time than standard bank-direct applications.
Many entities work together to finish this transaction:
- Stock brokers and their application software
- The NSE and BSE bidding platforms
- The official UPI payment platform
- Mobile banking systems or BHIM apps
- Share registrars
- Share depositories like NSDL and CDSL