Investors who are looking to put their money into the market through intermediaries have a new rule to contend with. As per the latest developments, individual investors who are applying for amounts up to Rs 5 lakh will be required to use the Unified Payments Interface (UPI) to block their funds.

This move is seen as a step towards increasing the use of digital payments in the country. UPI, which was launched in 2016, has been gaining popularity over the years, and this move is expected to further boost its adoption. The idea behind this rule change is to increase transparency and reduce the risk of fraud in the investment process. By using UPI, investors will be able to block their funds in a safe and secure manner.

For those who are new to UPI, it is a payment system that allows users to link their bank accounts to a unique virtual ID. This virtual ID can then be used to make payments without having to share one's bank account details. UPI is a highly secure payment method, and it is widely accepted by merchants across the country.

The rule change is expected to benefit investors in several ways. For one, it will make the investment process more convenient. Investors will no longer have to visit a bank branch or an intermediary's office to block their funds. They can do it from the comfort of their own homes using their mobile phones. This will save them time and effort.

Another benefit of this rule change is that it will increase transparency in the investment process. Investors will be able to track their transactions in real-time, and they will receive notifications whenever their funds are debited or credited. This will reduce the risk of fraud and ensure that investors are always in control of their money.

The rule change is also expected to benefit intermediaries. They will no longer have to handle large amounts of cash, which will reduce their risk exposure. They will also be able to process transactions more quickly and efficiently, which will improve their productivity.

In conclusion, the rule change requiring individual investors to use UPI to block funds for investments up to Rs 5 lakh is a positive development. It will make the investment process more convenient, transparent, and secure. Investors will be able to track their transactions in real-time, and they will receive notifications whenever their funds are debited or credited. This move is expected to boost the use of digital payments in the country and promote financial inclusion.