SEBI has launched a new system to enhance the security of digital transactions, where authorized entities will be provided with special “@valid” UPI IDs. Investors will be able to easily identify that their money is going to the correct place. Additionally, features like visual confirmation, QR codes, and “SEBI Check” have also been added.
UPI system: To curb digital fraud and ensure investor safety, the Securities and Exchange Board of India (SEBI) has launched a new “@valid UPI handle” system. Under this system, registered entities such as brokers and mutual funds will receive special UPI IDs, allowing investors to easily identify that they are paying the correct entity. Additionally, transactions will become even more secure and transparent through visual confirmation, unique QR codes, and the “SEBI Check” tool.
What is the new system?
SEBI has implemented a special type of UPI system known as the “@valid UPI handle.” Under this, every registered entity, such as a broker, mutual fund company, or other financial intermediary, will be provided with a unique UPI ID. This ID will mandatorily contain two elements. First, it will include the word “@valid,” indicating that the ID is recognized by SEBI. Second, it will signify the category of the entity.
For example, a broker's ID might be – abc.brk@validhdfc. Similarly, if it's a mutual fund company, its ID will appear as – xyz.mf@validicici. This will enable investors to instantly identify that they are sending money to a correct and authorized entity.
Building Trust in Transactions
SEBI has attempted to make this system not only secure but also user-friendly. Whenever an investor or customer transfers money to an @valid UPI ID, a “thumbs-up” icon in a green triangle will appear on their screen. This will signify that the money is going to a valid and SEBI-registered entity.
This means users will now receive a visual confirmation with every transaction. This will significantly reduce the likelihood of fraud.
Easy Payments with Special QR Codes
Keeping investor convenience in mind, SEBI has also implemented a special type of QR code. Each registered entity will receive a unique QR code. This QR code will also feature the same “thumbs-up” logo in its center. When an investor makes a payment by scanning this QR code, they will immediately be assured that they are sending money to the correct entity.
This feature will prove particularly helpful for those who prefer to complete transactions by scanning rather than typing the ID directly.
SEBI Check Facility
To provide even ber security to investors, SEBI has launched a new service called “SEBI Check.” Through this, any individual can verify whether they are sending money to the correct entity or not.
With this tool, you can not only check the validity of UPI IDs but also confirm bank account details. Furthermore, if you are sending money through other methods like RTGS, NEFT, or IMPS, these can also be verified here.
To use SEBI Check, investors will need to visit SEBI's official website or the Saathi mobile app.
Significant Relief for Investors
SEBI's move is considered extremely important to protect against digital fraud. This is because, until now, people were often scammed through fake websites, incorrect links, and counterfeit UPI IDs. However, features like the @valid UPI handle, visual confirmation, and special QR codes will now reduce these risks.
It will also become easier for investors to instantly identify where their funds are going. Transactions related to mutual funds, the stock market, and other financial services will now become more transparent.
A New Impetus for Digital India
SEBI's initiative will also strengthen the Digital India campaign. India is among the countries globally where the highest number of digital payments are made. Therefore, ensuring the security of transactions was extremely crucial. Now, investors will be able to invest in mutual funds, purchase shares, and conduct online transactions with peace of mind.
