Paytm has launched automatic payment deductions from bank accounts for trading on equity broking apps.
With this feature, Paytm UPI users can directly execute trades without transferring large sums to their brokerage accounts. Instead, funds will remain in their bank accounts, earning interest until the actual trade is made.
The company’s ‘UPI Trading Blocks,’ built on NPCI’s UPI infrastructure, ensures that funds are deducted only at the time of trade execution. The process is automated, eliminating the need for users to enter a UPI PIN for every transaction. This setup provides greater transparency, as the money stays in the investor’s bank account until required for a trade.
“Once the trade is completed, users can track and manage their funds through the Paytm app. Currently, the feature is available for UPI handles of Axis Bank (@ptaxis) and Yes Bank (@ptyes) and will soon be extended to State Bank of India (@ptsbi) and HDFC Bank (@pthdfc),” Paytm said in an exchange filing.
The company highlighted that UPI Trading Blocks eliminate the need for traders to transfer money in advance to brokerage accounts while ensuring seamless and secure transactions.
A Paytm spokesperson said, “We are excited to launch UPI Trading Blocks on Paytm UPI, offering stock traders a more convenient way to manage their funds. This feature automates payment deductions directly from bank accounts, reducing the hassle of transferring large sums to brokers.”
Shares of Paytm parent company, One97 Communications, were down 1.51 percent at Rs 715.5 on the NSE at around 11 AM on Tuesday.
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