Zerodha CEO Nithin Kamath welcomes SEBI’s new UPI security feature: ‘This should help reduce…’

Zerodha

CEO

Nithin Kamath

recently highlighted the increase in fraud cases where scammers pose as brokers and trick investors into transferring money to fake UPI IDs. In a post on microblogging site X (formerly Twitter), Kamath said such incidents have “skyrocketed,” putting investors at serious risk. To tackle the threat, the Securities and Exchange Board of India (

SEBI

) has introduced a new

UPI security feature

. Kamath in his post, highlighted the feature stating "all legitimate fund transfers will now only go to verified UPI handles like: brokername@validbank”. He wrote:

“The number of fraud cases involving scammers impersonating brokers and asking for money to be transferred to random accounts has skyrocketed.

To protect investors, SEBI has introduced a new UPI security feature. All legitimate fund transfers will now only go to verified UPI handles like: brokername@validbank (as shown in the image). We'll @zerodhaonline implement this soon, and this should help reduce fraud incidents significantly.”

The initiative is expected to streamline the fund transfer process and offer greater transparency and trust in

digital transactions

across the

stockbroking ecosystem

. Brokerages are likely to roll out this update in phases in the coming weeks.Responding to Kamath’s post, one user wrote “This is a necessary step towards enhancing investor security. It's crucial for everyone to remain vigilant and verify before transferring any funds.” “Great move by SEBI! Investor protection should always come first. This UPI verification will make life much harder for scammers. Hope other brokers adopt this quickly too,” said a second user.