SEBI mandates that all covered intermediaries utilize validated ‘@valid’ UPI IDs for payments starting October 1, 2025, aiming to strengthen payment verification and reduce fraud.
SEBI Approves Utilization of ‘@valid’ UPI Handles for Intermediaries
In a significant regulatory advancement, SEBI announced on August 6, 2026, that all covered intermediaries will be required to use validated ‘@valid’ UPI IDs effective October 1, 2025. This mandate is part of SEBI's initiative to enhance payment security and minimize fraud in investor transactions.
The usage of validated UPI handles will not only streamline payment verification processes but also provide a trustworthy mechanism for investors engaging with intermediaries. This measure is intended to address concerns around fraudulent transactions and ensure the safety of investor funds.
By enforcing the requirement for 'valid' UPI IDs, SEBI is emphasizing the critical importance of robust payment systems in the digital financial landscape. This regulatory change aligns with global best practices for payment security and reflects SEBI's commitment to safeguarding investor interests.
Investment professionals and financial intermediaries should prepare for the upcoming changes to payment handling processes and compliance measures to align with SEBI's new framework to avoid operational disruptions.
Citations
- SEBI Notification (2026) SEBI Circular 2026-08-06
