Update on Standardized UPI Handles at Kotak Neo

SEBI has recently issued a circular titled “Adoption of Standardized, Validated, and Exclusive UPI IDs for Payment Collection by SEBI Registered Intermediaries” (available here)

This circular introduces an industry-wide framework for how brokers and other registered intermediaries should receive UPI payments from investors.

Below is a simple explanation of what the circular states and how Kotak Neo is implementing it.

What the SEBI circular says

SEBI has mandated that all registered intermediaries adopt a standardized UPI ID structure for collecting funds from investors.

The objective of this framework is to: -Create a uniform UPI handle format across the industry

• Prevent confusion caused by lookalike or unofficial payment handles
• Ensure that every investor sees clear and verified information while making a payment
• Bring consistency in how UPI payments are validated and processed

To achieve this, SEBI has introduced an updated UPI structure that includes:

1. A category code before the ‘@’ This code identifies the type of intermediary:

• brk → Brokers
• mf → Mutual Funds

2. Valid handle - To the right of ‘@’, you’ll see the exclusive handle @valid, followed by the bank name. For example:

• merchant.brk@validbankname
• merchant.xyz.brk@validbankname

3. An indicator on QR code

All official QR codes will display the white thumbs-up icon inside a green triangle, which helps users identify a standardised, SEBI-aligned handle.

How Kotak Neo is implementing this

Kotak Neo has fully implemented the new standardised UPI handle format as mandated by SEBI.

Current status

• The new @valid UPI handles are fully live for all UPI payments made through the app and website.
• All UPI payments will now follow the updated standardised format.

Do customers need to do anything?

No. Nothing changes for you.

• You can continue adding funds exactly the way you do today.
• Your experience on the Kotak Neo app or website remains the same.
• Payment will automatically be routed to the standardised handle.
• You do not need to update anything or manually change any UPI IDs.

This update happens on our systems internally and doesn’t require any action from your side.

Making safe payments

To ensure your transfers always reach the correct destination:

• Use the Deposit option available on the Kotak Neo app or website.
• Do not initiate payments directly from external UPI apps like Google Pay, PhonePe, or Paytm, as these transfers will fail.
• The new UPI IDs will also appear in this updated format on your UPI apps (Google Pay, PhonePe, Paytm, etc.) whenever you initiate a payment from Kotak Neo. The QR code on our website will show a white thumbs-up icon inside a green triangle.

We will continue to keep your payment experience smooth and secure throughout this transition. For any further information, please contact our support team.