SEBI launches validated UPI handles to stop investor payment fraud
What's the story
The Securities and Exchange Board of India(SEBI) has launched two new security measures: validated UPI handles with "@valid" suffix and a verification tool called "SEBI Check." The initiatives are aimed at protecting investors from fraudulent money transfers and unauthorized entities. The new system was introduced on Wednesday, in collaboration with the National PaymentsCorporation of India (NPCI).
Handle details
Unique UPI IDs for registered intermediaries
SEBI has introduced unique "@valid" UPI IDs for all registered investor-facing intermediaries, such as brokers and mutual funds. Each of these handles will have the "@valid" suffix along with a category-specific identifier. For instance, brokers will use the ".brk" suffix while mutual funds will use ".mf." The move is intended to provide investors with a unique identifier for each intermediary they transact with, thereby reducing the risk of fraud.
Security measure
Visual authentication indicator
A key feature of the validated handles is a visual authentication indicator. When an investor makes a UPI payment to a registered entity using an @valid handle, they will see a "thumbs-up" symbol inside a green triangle on their payment screen. If this symbol is missing, it indicates that the recipient could be unauthorized. To make payments even easier and error-free, intermediaries will also provide specially designed QR codes with the same thumbs-up logo at their center.
Verification tool
'SEBI Check' digital verification tool
Along with the new UPI system, SEBI has also launched "SEBI Check," a digital verification tool. This lets investors independently verify bank account details and UPI IDs of registered intermediaries. By entering the account number and IFSC code or the @valid UPI ID, investors can confirm authenticity through either the SEBI Check platform or Saarthi mobile app.
Impact
Major brokers, mutual funds on board
SEBI expects these initiatives to give investors more security, lower fraud risk, and boost trust in the digital transaction framework of the securities market. The regulator said these rollouts demonstrate its commitment to protecting investors, maintaining market integrity, and strengthening digital trust in India's financial ecosystem. As of now, major brokers representing over 90% of the investor base have adopted this system along with all mutual fund houses.