Description

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

Summary

BSE has issued an important advisory to Mutual Fund Intermediaries (MFIs), Mutual Fund Distributors (MFDs), and Registered Investment Advisors (RIAs) regarding changes to UPI payment processing. 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, members must activate and integrate UPI Intent/QR mode with their payment aggregators immediately.

Key Points

  • UPI Collect flow (Pay via UPI ID/Number) may be discontinued for one-time UPI payments
  • Members must enable/integrate UPI Intent/QR mode with payment aggregators
  • Action required to ensure seamless payment processing and avoid disruptions
  • Members should contact their payment aggregator to confirm UPI Intent/QR integration
  • Applies to MFIs, MFDs, and RIAs operating in the mutual fund segment

Regulatory Changes

No formal regulatory change, but an operational update from Payment Aggregators indicating the potential discontinuation of UPI Collect flow for one-time payments. This represents a shift in the payment infrastructure that requires technical adaptation by market participants.

Compliance Requirements

  • Immediate Action: Enable/integrate UPI Intent/QR mode with respective payment aggregators
  • Verification: Contact payment aggregator to confirm successful UPI Intent/QR integration
  • Migration: Ensure seamless migration from UPI Collect flow to UPI Intent/QR mode
  • Testing: Verify that UPI payment acceptance continues uninterrupted after integration

Important Dates

  • Notice Date: February 3, 2026
  • Action Timeline: At the earliest (immediate action recommended)
  • Discontinuation Timeline: Near future (specific date not provided by payment aggregators)

Impact Assessment

Operational Impact: High - Failure to implement UPI Intent/QR mode could result in complete disruption of UPI payment acceptance for mutual fund transactions. This affects the payment infrastructure for MFIs, MFDs, and RIAs.

Market Participants Affected: All Mutual Fund Intermediaries, Mutual Fund Distributors, and Registered Investment Advisors who accept UPI payments.

Technical Requirements: Members must work with their payment aggregators to implement new payment modes, requiring coordination and potential system updates.

Customer Experience: Uninterrupted payment processing is critical for maintaining investor confidence and ensuring smooth mutual fund transactions.

Impact Justification

Critical operational change affecting payment processing for mutual fund intermediaries. Requires immediate action to prevent payment disruptions as UPI Collect flow may be discontinued.