Description

BSE advises MFIs/MFDs/RIAs to enable UPI Intent/QR mode as UPI Collect flow may be discontinued for one-time payments.

Summary

BSE has issued an urgent advisory to Mutual Fund Intermediaries (MFIs), Mutual Fund Distributors (MFDs), and Registered Investment Advisors (RIAs) regarding an upcoming change in UPI payment infrastructure. Payment Aggregators have indicated that the UPI Collect flow (Pay via UPI ID/Number) may be discontinued in the near future for one-time UPI payments. To ensure uninterrupted payment processing, all members must enable and integrate UPI Intent/QR mode with their respective payment aggregators immediately.

Key Points

  • UPI Collect flow (Pay via UPI ID/Number) may be discontinued for one-time UPI payments
  • Alternative payment method UPI Intent/QR mode must be activated to maintain continuity
  • Advisory applies to MFIs, MFDs, and RIAs in the mutual fund segment
  • Members must contact their payment aggregators to confirm UPI Intent/QR integration
  • Immediate action required to prevent payment processing disruptions
  • Notice issued under Settlement/RMS category for Mutual Fund segment

Regulatory Changes

Payment Aggregators are planning to discontinue the UPI Collect flow (Pay via UPI ID/Number) for one-time UPI payments. This represents a significant shift in the UPI payment infrastructure used for mutual fund transactions. The change is being implemented at the payment aggregator level and will affect all entities relying on UPI Collect mode for processing customer payments.

Compliance Requirements

  • Immediate Action: Contact payment aggregators to enable/integrate UPI Intent/QR mode
  • Confirm Integration: Verify that UPI Intent/QR mode is properly configured and operational
  • Migration Planning: Ensure seamless migration from UPI Collect to UPI Intent/QR mode
  • System Updates: Update payment processing systems to support the new payment flow
  • Stakeholder Communication: Inform customers and internal teams about the payment method changes

Important Dates

  • Notice Date: February 3, 2026
  • Action Timeline: Immediate action required; specific discontinuation date not specified but described as “near future”
  • Urgency: Advisory emphasizes earliest possible implementation to avoid disruptions

Impact Assessment

Operational Impact: High - All mutual fund intermediaries using UPI payments will be affected. Failure to implement UPI Intent/QR mode will result in payment processing failures and transaction disruptions.

Market Impact: High - Mutual fund industry relies heavily on UPI for retail investor transactions. Any disruption in payment processing could affect investment flows and customer experience.

Technical Impact: Requires coordination with payment aggregators, potential system updates, and testing of new payment flows. Organizations must allocate technical resources to implement and validate the changes.

Customer Impact: If not implemented properly, customers may face payment failures when attempting mutual fund transactions, potentially affecting investment timing and customer satisfaction.

Risk Mitigation: Early implementation of UPI Intent/QR mode will ensure business continuity and prevent revenue loss from failed transactions.

Impact Justification

Critical infrastructure change affecting all mutual fund intermediaries' payment processing capabilities; requires immediate action to prevent payment disruptions