Paytm Unveils UPI Trading Block to Simplify Stock Trading Experience

-Paytm UPI users can now set up automatic payment deductions directly from their bank accounts for trades.

-This feature allows users to continue earning interest on their funds, as the money remains in their bank account until a trade is executed.

-Currently available for UPI handles of Axis Bank and Yes Bank, the feature will soon extend to UPI handles.

Paytm (One 97 Communications Limited) has announced the launch of UPI Trading Blocks (also known as Single Block Multiple Debits) on its platform. This new feature is aimed at enhancing the broking experience for stock traders by streamlining the process of fund allocation for trading. 

With this feature, Paytm UPI users can now set up automatic payment deductions directly from their bank accounts for trades, eliminating the need to transfer large sums to brokerage apps.

This feature allows users to continue earning interest on their funds, as the money remains in their bank account until a trade is executed. Built on NPCI’s infrastructure and leveraging UPI, Paytm’s UPI Trading Blocks deducts the amount automatically only when a trade is made, without requiring a UPI PIN. Offering full transparency, it ensures funds stay in the investor’s account while providing a seamless and convenient way to manage and pay for trades.

Further, once the trade is completed, users can easily manage and track their funds on the Paytm app. Currently available for UPI handles of Axis Bank and Yes Bank, the feature will soon extend to UPI handles of State Bank of India and HDFC Bank, according to Paytm’s exchange filing.

“This service simplifies fund management by enabling seamless, automatic payment deductions directly from bank accounts, eliminating the need to transfer large sums to broker or brokerage apps. With faster and reliable payments with Paytm UPI, we hope to continue to innovate and elevate the trading experience for our users,” Paytm spokesperson said.

In another instance, the Enforcement Directorate (ED) issued a notice to Paytm’s parent company, its MD, and related entities yesterday for violating the Foreign Exchange Management Act (FEMA) involving INR 611 Cr.

As per Paytm's 2024 annual report, founder Vijay Shekhar Sharma serves as the company's chairman, managing director (MD), and CEO.

The notice was issued by a special director of the Enforcement Directorate following the completion of an investigation, ahead of adjudication proceedings under the law.

However, a Paytm spokesperson stated that the company is actively working to resolve the issue in compliance with all relevant laws and regulatory processes.