A new payment mechanism for secondary market trades is expected to become a reality sooner than initial projections. This is furrowing the brows of brokers.
The proposal to introduce an application supported by blocked amount (ASBA) mechanism for the secondary market has been kicked into motion, with the Reserve Bank of India (RBI) approving critical tweaks to the Unified Payments Interface (UPI).
On December 7, the RBI announced the introduction of ‘single-block multiple debits’ functionality for UPI, facilitating the ASBA model for the secondary market for retail investors. Adding functionality to the UPI mechanism is expected to advance the timelines