UPI limit hike signals change in IPO allotment, to boost HNI participation

In November, more than 7.6 million UPI mandates were created for IPO applications

The Reserve Bank of India (RBI) on Wednesday announced that the transaction limit on the unified payment interface (UPI) for investing in initial public offerings (IPOs) will be increased from Rs 2 lakh at present to Rs 5 lakh, a move seen as a precursor to changes in the IPO allotment process.

At present, the maximum an individual investor can apply under the retail quota of an IPO is Rs 2 lakh — the same as the upper limit for UPI transactions. As a result, prima facie, the RBI’s increased limit is not seen benefiting individual investors.

However, the Securities and Exchange