Text size:
S M L
Letter spacing:

Get App

FinFIRST Blogs

Finance

ASBA vs UPI for IPO Application: Key Differences Explained

Key Takeaways

ASBA and UPI both allow IPO applications by blocking funds in your bank account until share allotment, helping keep your money secure while potentially continuing to earn interest.
ASBA offers a more seamless bank-led experience by removing the need for separate UPI mandate approvals and supporting a wider range of investor categories.
UPI is convenient for investors applying through broker platforms, while ASBA may be better suited for users seeking a simpler and more reliable IPO application process.

04 May 2026 by Team FinFIRST

Apply Now

When applying for an IPO, investors can choose between two popular methods: ASBA and UPI. Understanding how each works is essential to deciding which option suits your investing needs.

The Application Supported by Blocked Amount (ASBA) is a method through which you apply for an Initial Public Offering (IPO) and Public issues. In the ASBA process, you initiate the process through internet banking and Mobile Banking. Funds in your bank account corresponding to the bid amount are blocked, not debited.

This ensures that your money remains secure in your account until shares are allotted. Once the public offering is complete and you have been successfully allocated shares, the corresponding amount is debited from your bank account. This makes the entire IPO ASBA process, from placing the bid to receiving the allotted shares, systematic and efficient.

Alternatively, investors can also apply for IPOs using UPI, a method that has gained popularity for its speed and ease of use. You can submit your ASBA IPO application at any Self-Certified Syndicated Bank (SCSB) or via UPI-linked applications offered by brokers and platforms.

This blog explains both options and compares them to help you determine which is better suited to your use case.

6 Types of UPI Frauds & How to Stay Safe | IDFC FIRST Bank

6 Ways You Can Reduce Fraud by Choosing Virtual Credit Card | IDFC FIRST Bank

What is ASBA?

If you are wondering what is ASBA, it's a straightforward process. It is a shift from the offline process to the online application process.

Earlier, one would have had to visit the broker's office in person to collect and complete the IPO application form. A cheque for the bid amount was required, along with copies of the other necessary documents.

However, with ASBA services, you can now submit the IPO application through your preferred SCSB. The bid amount is blocked in your Bank Account, and the required documents can be scanned and uploaded.

Suppose you apply for 100 shares in an IPO and place a bid of ₹50,000. This amount will be blocked in your bank account.

How does ASBA work?

IPO through ASBA steps:

Log on to your Demat Account on the broker’s website or app using Customer ID and password.
Ahead to the Upcoming IPO’s section. All live and upcoming IPOs will be listed here.
Choose the IPO you wish to apply for.
Enter your PAN card number, Bank Account number, and other required details.
Enter the number of shares and the bid amount you wish to place for the IPO.
Next, you will find the available payment options. Choose ASBA from it.
Once all information is filled in, review it carefully and click the Confirm button.

Upon successful IPO application submission, you will receive an SMS and email notification.

ASBA vs UPI: Which One Should You Choose?

UPI and ASBA both make it easy to apply for IPOs. Your funds stay secure and are debited after shares are allotted. Still, there are some key differences. In many situations, ASBA can be simpler and more reliable.

Why ASBA Can Be a Better Option

No Additional App Switching or Mandate Confirmation Required

When using UPI, you need to approve a mandate request in your UPI app after applying through your broker. If you delay or miss this step, your application might not go through.

With ASBA, you apply directly through your bank’s mobile or online banking. You don’t need to approve any separate mandate.

Funds Remain in Your Bank Account

With ASBA, the money is only blocked in your account and continues to earn interest (if applicable) until shares are allotted. The amount is only debited if shares are allotted.

Faster Repeat Applications

Since your funds are only blocked and released automatically if you don’t get shares, you can easily apply for several IPOs. You don’t have to worry about UPI mandate problems or approving requests repeatedly.

Wider Investor Eligibility

ASBA can be used by all types of investors, but UPI-based IPO applications are mostly for retail investors.

Direct Bank-Based Application

You can use your regular savings account, like with IDFC FIRST Bank’s mobile or online banking, to apply. This makes the process seamless and effortless.

When to Choose UPI

UPI is convenient if you prefer to apply through your broker platform and are comfortable managing mandate approvals in your UPI app.

Summing It Up

Application Supported by Blocked Amount (ASBA) and Unified Payment Interface (UPI), enables you to apply for an Initial Public Offering (IPO) and the Follow-on Public Offering (FPO). The bidding amount is blocked, so it stays safe in your account and continues earning interest. It is debited only upon the successful allotment of shares.

Frequently Asked Questions

Is ASBA safer than UPI for IPO applications?

Both ASBA and UPI are safe options for IPO applications, as the bidding amount is only blocked in your Bank Account and not debited. Hence, you don’t need to worry about it being misplaced or misused.

Can I apply for the same IPO using both ASBA and UPI?

No, you cannot apply for the same IPO using both ASBA and UPI. A single IPO application is permitted per PAN card, which is usually associated with both your Bank Account and UPI ID.

Which method is better for first-time IPO investors?

Both ASBA and UPI-based IPO applications are ideal for first-time investors due to their ease of use. So, it ultimately depends on your preference.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.