How-to BHIM UPI ID UPI ASBA IPO NPCI Zerodha

How to create a BHIM UPI ID for an IPO application

From WebNotes, a public knowledge base. Last updated . Reading time ~9 min. Level: Beginner.

A BHIM UPI ID is the virtual payment address you enter in the Zerodha Kite IPO bid form so that the application money can be blocked in your own bank account under the UPI ASBA mechanism. BHIM , the Bharat Interface for Money, is the UPI app built by the National Payments Corporation of India (NPCI), and it is the simplest app to create a clean, IPO-ready handle on, because it surfaces the mandate on the home screen and shows the full mandate parameters when you approve.

This guide creates the handle correctly the first time: linked to the bank account that actually holds your IPO funds, on a UPI handle the Kite IPO window accepts, registered to your own PAN so the registrar’s verification does not reject the bid. Get any one of those three wrong and the application fails, often after the money looks blocked. The fix is almost always a handle change, not a fresh bank account, so the small effort here saves a scramble during a live subscription window.

Conflict-of-interest disclosure. This guide is published by the WebNotes Editorial Team for informational purposes and is written independently. WebNotes operates a Zerodha account-opening referral programme, disclosed on the pages that carry the referral link; this guide does not carry it and earns no referral commission from the procedure described here.

Step-by-step procedure

The numbered box at the top of this guide gives the full sequence. The H3 subsections below expand the three steps that decide whether the handle works on Kite: choosing the right bank, fixing the handle when the default one is not accepted, and testing before you bid.

1. Install BHIM and verify the SIM

Download BHIM from the Google Play Store or the Apple App Store, open it, choose a language, and grant the SMS permission. BHIM sends a silent verification SMS from the SIM in the device to confirm the number. This is why the phone must hold the mobile number registered with your bank: UPI binds the UPI ID to that number’s bank mapping, and a mismatched number cannot fetch your accounts. If you have two SIMs, select the one registered with the bank when BHIM asks.

2. Set a passcode and select the funding bank

Set a four-digit BHIM app passcode, separate from the UPI PIN. On the bank-selection screen, pick the bank that holds the money you intend to fund the IPO from. This is the step people get wrong: if you select a bank where you keep a near-empty account, BHIM will block the funds in that account during the mandate, and the bid fails for insufficient balance even though you have money elsewhere. BHIM then queries that bank for the accounts linked to your registered number.

3. Confirm the linked account that holds your IPO funds

BHIM lists every account under your mobile number at the chosen bank. Select the specific savings account you want the IPO money blocked in. For a retail bid the block is the maximum bid value, the highest quantity times the upper end of the price band , so confirm that account holds at least that sum before you bid. The UPI ID BHIM creates maps to this account and no other.

4. Set the UPI PIN with your debit card

If you have never set a UPI PIN, BHIM walks you through it: enter the debit card’s last six digits and expiry, receive an OTP from the bank, then choose a four or six digit UPI PIN. This PIN is what authorises the IPO mandate later, so set one you will remember during the bidding window. If a PIN already exists for that account on any UPI app, BHIM reuses it; the PIN is per bank account, not per app.

5. Note your UPI ID and add a bank-specific handle if needed

BHIM assigns a default UPI ID on the @upi handle, where Yes Bank acts as the payment service provider (PSP). Open the Profile or My BHIM UPI ID screen to read it; it looks like 9876543210@upi. Many banks also let BHIM mint a bank-specific handle for the same account, for example name@okhdfcbank, name@okaxis, or name@oksbi, where the bank itself is the PSP. The bank-specific handle matters for IPOs: the Kite window accepts a handle only when the bank behind it is live for UPI ASBA, and a bank-direct handle routes the mandate through the bank’s own rails rather than the @upi PSP, which sometimes resolves a “handle not supported” message.

6. Test the handle, then use it on Kite

Before a live IPO, confirm the handle resolves: send Rs 1 to yourself, or have someone enter the UPI ID and check that your name appears. Then place the bid in Kite under Bids, IPO, Apply, entering this UPI ID. Submitting the bid triggers a UPI mandate request to BHIM. Approve it from the home-screen banner, following the BHIM mandate-approval guide , and verify the bid status moves from Mandate Pending to Mandate Accepted on Kite.

Why the handle and the account must be your own

The single rule that overrides convenience here comes from SEBI and NPCI, not Zerodha. NPCI’s customer FAQ states that applications made by retail investors using a third-party UPI ID, or by any category of investor using a third-party bank account, are liable for rejection, and that an IPO amount cannot be initiated as a direct pay to a UPI ID. The registrar to the issue runs a third-party check that matches the PAN on the bidding demat against the PAN on the bank account behind the UPI ID. If you create a BHIM UPI ID on a parent’s, spouse’s, or friend’s account, the lien may even be placed, but the registrar discards the application at the verification stage and the money is released without any allotment. Create the handle on an account in your own name, mapped to your own PAN, and this failure cannot occur.

Why some BHIM handles are not accepted on Kite

The Zerodha Kite IPO window only offers handles whose underlying bank is live for UPI ASBA on the NPCI IPO partners list, published at npci.org.in. If your default @upi handle is not accepted, the cause is usually one of two things: the Yes Bank PSP route is momentarily not resolving the mandate for your bank, or your bank is simply not live for IPO UPI. The first is fixed by switching to a bank-specific BHIM handle for the same account; the second needs a different supported bank account, or the bank ASBA via NetBanking route entirely. For the full diagnosis of a missing handle, see why some UPI handles are not shown on the Zerodha IPO window and the supported apps and banks list .

Limits and eligibility

The UPI route caps a single IPO mandate at Rs 5,00,000 per transaction, the NPCI limit for the IPO and capital-market category since December 2021. Only resident individual investors, and HUFs applying through the karta, may use UPI for a public issue; non-individuals and Non-Resident Indians apply through bank ASBA. A bid up to the retail ceiling of Rs 2,00,000 sits in the RII category; a bid above Rs 2,00,000 and up to Rs 5,00,000 is technically deliverable on UPI but falls in the Non-Institutional Investor category. See who can use UPI ASBA for an IPO for the full eligibility map.

See also

External references

References

  1. NPCI, FAQs on UPI 2.0 IPO for Customer, and Apply for IPO using UPI ID product overview, npci.org.in (third-party UPI ID and third-party bank account liable for rejection; no direct pay to a UPI ID).
  2. SEBI, FAQs on the use of Unified Payments Interface (UPI) with ASBA in public issues, April 2022 (retail individual investor UPI route; Rs 5 lakh per-transaction limit; one application per bank account).
  3. NPCI Circular dated 9 December 2021, Enhancement of UPI per-transaction limit to Rs 5,00,000 for capital-market use cases.
  4. NPCI UPI 2.0 mandate specification (one-time block mandate construct), npci.org.in.

WebNotes Editorial Team prepares factual how-to guides based on publicly available regulatory documents and broker disclosures. WebNotes is not affiliated with Zerodha Broking Limited or NPCI. App flows, supported-bank lists, and limits change; verify the current UPI ASBA partner list at npci.org.in and the bid steps at support.zerodha.com before applying.

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Frequently asked questions

Which BHIM UPI ID works for an IPO on Zerodha?
Any BHIM UPI ID mapped to your own bank account works, provided the underlying bank appears on the NPCI live IPO partners list. If the Kite window does not accept the default @upi handle, create a bank-specific handle in BHIM for the same account.
Does the BHIM UPI ID have to be on the bank that holds my IPO money?
Yes. The UPI ID must map to the account from which the funds are blocked. BHIM places the lien on the exact account the handle points to, so create the handle on the bank and account you intend to fund the IPO with.
Why is my BHIM UPI ID not shown on the Zerodha IPO window?
The window only accepts handles whose bank is live for UPI ASBA on the NPCI partner list. If your bank is not live, or you used a handle the dropdown does not recognise, switch to a bank-specific BHIM handle or a different supported bank account.
Can I use BHIM if my number is not the one registered with my bank?
No. UPI verification reads the SIM on the device, and the number must match the one registered with the bank account. Use the phone holding your bank-registered number, or update the number with the bank first.
Is creating a BHIM UPI ID for an IPO free?
Yes. BHIM, UPI ID creation, and UPI ASBA itself carry no charge. Applying for an IPO through Zerodha using a supported UPI app is free; you pay nothing to block or release the funds.
Do I still need to approve a mandate after creating the UPI ID?
Yes. The UPI ID only identifies your account. After you place the bid on Kite, BHIM sends a Block Funds for IPO mandate that you must authorise with your UPI PIN before 5 PM IST on the bid closing day, or the bid is rejected.

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