UPI mandate is the standard mechanism for retail IPO applications under the UPI-ASBA flow. When a retail applicant submits an IPO bid through their broker app, the broker triggers a mandate request to the applicant's UPI ID. The mandate appears in the applicant's UPI app (PhonePe, Google Pay, BHIM, Paytm) as a notification to approve.
On approval, the bid amount is blocked in the linked bank account. The funds are not debited — they remain in the applicant's account, just frozen. If allotment happens, the amount equal to the allotted shares is debited; the remainder is unblocked. If no allotment, the full amount is unblocked typically within 24-48 hours.
UPI mandate approval has a deadline — usually 5 PM IST on the issue's close day. Failing to approve before the deadline is one of the most common reasons retail applications fail validation. Bidders should check their UPI app and approve as soon as the mandate notification arrives, not wait until the deadline.