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UPI Mandate Approved But IPO Application Not Submitted – Complete Solution Guide

UPI Mandate Approved But IPO Application Not Submitted

Many IPO investors face a confusing situation where the UPI mandate gets approved, but the IPO application is not submitted successfully. In such cases, the money appears to be blocked in the bank account even though the application was not completed. This can create concern for investors who worry that their funds may be stuck. If you are facing this issue, understanding the reason and the correct solution can help you resolve it quickly.

What Does “UPI Mandate Approved” Mean in an IPO?

When you apply for an IPO using the UPI method, you receive a mandate request in your UPI application such as Google Pay, PhonePe, Paytm, or BHIM. After approving the mandate, the bank blocks the IPO application amount in your account.

This blocked amount is not deducted from your bank account. It simply means the bank has reserved the amount until the IPO process is completed. If the application is successfully submitted and you receive allotment, the required amount will be debited. If you do not receive allotment, the blocked amount will be released.

However, sometimes investors approve the UPI mandate but the IPO application does not get submitted due to technical or process-related issues.

Why IPO Application Is Not Submitted After UPI Mandate Approval

There can be several reasons why the IPO application fails even after the UPI mandate is approved. One common reason is an incomplete application process. Sometimes investors approve the mandate but forget to complete the final submission step on the broker or IPO platform.

Technical glitches can also cause this issue. High traffic during popular IPO launches may slow down the system, which may prevent the application from being recorded properly.

Incorrect details such as a wrong PAN number, incorrect demat account information, or mismatched bank details may also lead to application rejection. In some cases, the mandate approval happens first, but the broker platform fails to submit the application to the exchange.

How to Check If Your IPO Application Was Submitted

The first step is to check the IPO application status on the platform where you applied. This could be your broker’s website or IPO application platform.

If the application was successfully submitted, you will see an application number or bid confirmation. If there is no application record, it means the mandate was approved but the application was not completed.

You can also check the status using your PAN number or application number on the IPO registrar’s website once the bidding data is available.

What Happens to the Blocked Money

If the IPO application was not submitted but the mandate was approved, the money will remain blocked in your bank account for a certain period. The amount is usually released automatically when the UPI mandate expires.

In most cases, the blocked amount is released within 24 to 48 hours or after the mandate validity period ends.

Steps to Solve the Issue

If you notice that your IPO application was not submitted even after approving the UPI mandate, follow these steps:

  1. Check the IPO application status on the platform where you tried to apply. Confirm whether the application was recorded or not.
  2. Check the mandate status in your UPI app. If the mandate is still active, you may have the option to cancel it manually.
  3. Contact your bank or UPI app support if the amount remains blocked even after the mandate expiry.
  4. If the IPO is still open, you can submit a new application with the correct details to participate in the issue.

How to Avoid This Problem in Future IPO Applications

To avoid this situation, always make sure that you complete the entire IPO application process after approving the UPI mandate. Wait until you receive a confirmation message or application number.

Double-check your PAN, demat account details, and UPI ID before submitting the application. Applying through a reliable IPO platform and monitoring the application status can also help prevent such issues.

Final Words

If your UPI mandate is approved but the IPO application is not submitted, there is usually no need to panic. The money is only blocked temporarily and will be released automatically once the mandate expires. By checking your application status, verifying the UPI mandate, and contacting the bank if necessary, you can easily resolve the issue.

For the latest IPO updates, application guides, allotment status, and investor solutions, you can also visit IPO Trend to stay informed and make better IPO investment decisions.