What is ASBA?
ASBA stands for Application Supported by Blocked Amount. Your bank blocks the application amount in your savings account instead of debiting it. The money stays in your account and earns interest until allotment is confirmed.
What is UPI-Based IPO Application?
Since 2019, retail investors can apply for IPOs using UPI directly through broker platforms (Zerodha, Groww, etc.). You enter your UPI ID, and after submitting the application, you approve a payment mandate on your UPI app (GPay, PhonePe, Paytm, etc.).
ASBA vs UPI: Side-by-Side
| Feature | ASBA (Bank) | UPI (Broker) |
|---|---|---|
| Platform | Bank net banking | Broker app / website |
| Convenience | Moderate | Very high |
| Max Application | No limit (for HNI) | ₹5 lakh (UPI limit) |
| Mandate Approval | Auto (bank handles it) | Manual (must approve in UPI app) |
| Risk of Rejection | Lower | Higher (if mandate not approved in time) |
| Interest on blocked amount | Yes (in your bank account) | Yes (same principle) |
UPI Limit: ₹5 Lakh
SEBI raised the UPI IPO limit from ₹2 lakh to ₹5 lakh for UPI applications. This covers the retail category comfortably and even goes into the NII range.
For HNI applications above ₹5 lakh, ASBA via net banking is required.
Which Should You Use?
- For retail investors (up to ₹2 lakh): UPI via broker app is the most convenient option
- For HNI applications (above ₹5 lakh): Use ASBA via bank net banking
- Always approve the UPI mandate within 30 minutes — delayed approval can void your application
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