{"id":12171,"date":"2026-05-22T13:38:20","date_gmt":"2026-05-22T13:38:20","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/glossary\/asba\/"},"modified":"2026-05-22T13:38:20","modified_gmt":"2026-05-22T13:38:20","slug":"asba","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/asba\/","title":{"rendered":"ASBA"},"content":{"rendered":"<p><a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/asba\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>ASBA<\/a> &mdash; Application Supported by Blocked Amount &mdash; is the standard process for <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/ipo\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>IPO<\/a> applications in India. Instead of paying upfront, your bank blocks the application amount in your savings account; if <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/shares\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>shares<\/a> are allotted, the blocked amount is debited; if not, it is released back to you. ASBA simplified IPO investing and is fully integrated with <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/upi\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>UPI<\/a> for retail investors.<\/p>\n<div><strong>Key takeaways:<\/strong>\n<ul>\n<li>ASBA blocks funds in your bank account until IPO allotment.<\/li>\n<li>Mandatory for retail and HNI applications since <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/sebi\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>SEBI<\/a>&rsquo;s 2008 framework.<\/li>\n<li>UPI-based ASBA is the most common retail route today.<\/li>\n<li>You earn savings-account interest on the blocked amount until debit.<\/li>\n<li>Eliminates the need to send cheques or wait for refunds.<\/li>\n<\/ul>\n<\/div>\n<h2 id=\"how-asba-works\">How ASBA works<\/h2>\n<ol>\n<li>You apply for an IPO through your <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/broker\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>broker<\/a>.<\/li>\n<li>Choose UPI as the payment mode.<\/li>\n<li>Receive a UPI mandate request on your phone.<\/li>\n<li>Approve the mandate &#x2014; your bank blocks the application amount.<\/li>\n<li>If shares are allotted, the blocked amount is debited; if not, the block is released.<\/li>\n<\/ol>\n<h2 id=\"why-asba-exists\">Why ASBA exists<\/h2>\n<p>Before ASBA, IPO applicants had to send cheques or demand drafts and wait days for refunds if they did not receive allotment. The blocked-amount mechanism removed that friction &#x2014; no more lost interest on application money, no refund delays, and significantly reduced operational risk.<\/p>\n<h2 id=\"upi-vs-bank-asba\">UPI vs Bank-ASBA<\/h2>\n<table>\n<tr>\n<th><\/th>\n<th>UPI-ASBA<\/th>\n<th>Bank-ASBA<\/th>\n<\/tr>\n<tr>\n<td>Application limit<\/td>\n<td>&#x20B9;5 lakh (retail)<\/td>\n<td>Any amount<\/td>\n<\/tr>\n<tr>\n<td>Speed<\/td>\n<td>Instant<\/td>\n<td>Through bank branch \/ netbanking<\/td>\n<\/tr>\n<tr>\n<td>Best for<\/td>\n<td>Retail individuals<\/td>\n<td>HNIs and very large applications<\/td>\n<\/tr>\n<\/table>\n<h2 id=\"common-asba-related-issues\">Common ASBA-related issues<\/h2>\n<ul>\n<li>UPI mandate not received &#x2014; check the app notification settings.<\/li>\n<li>Mandate approved twice &#x2014; only one block is valid; others are rejected.<\/li>\n<li>Insufficient funds at the time of allotment &#x2014; your application can be rejected.<\/li>\n<li>Multiple PAN-based applications &#x2014; flagged and may be invalidated.<\/li>\n<\/ul>\n<h2 id=\"practical-tips\">Practical tips<\/h2>\n<ul>\n<li>Approve the UPI mandate within the window provided (typically a few days).<\/li>\n<li>Keep sufficient balance until allotment day to avoid rejection.<\/li>\n<li>Apply through one PAN account only &#x2014; multiple applications from the same PAN are not allowed.<\/li>\n<li>Watch the application status; reject reasons are visible in your broker portal.<\/li>\n<\/ul>\n<h2 id=\"beyond-ipos\">Beyond IPOs<\/h2>\n<p>ASBA is also used for Follow-on Public Offers (FPOs), <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/rights-issue\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">rights issue<\/a>s, and certain bond issues. The underlying mechanism &mdash; block now, debit on allotment &mdash; is the same. SEBI continues to enhance ASBA processes, with recent moves to allow ASBA-based <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/trading\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>trading<\/a> and faster settlement.<\/p>\n<h2 id=\"frequently-asked-questions\">Frequently asked questions<\/h2>\n<div>\n<h3 id=\"do-i-lose-interest-on-blocked-funds\">Do I lose interest on blocked funds?<\/h3>\n<p>No. The amount remains in your savings account earning interest until it is debited or released.<\/p>\n<h3 id=\"can-i-cancel-an-asba-application\">Can I cancel an ASBA application?<\/h3>\n<p>Yes, before the IPO closure. Your block is released after cancellation.<\/p>\n<h3 id=\"is-asba-mandatory\">Is ASBA mandatory?<\/h3>\n<p>Yes for IPOs in India since 2016 for all investor categories.<\/p>\n<h3 id=\"does-lemonn-support-asba\">Does Lemonn support ASBA?<\/h3>\n<p>Yes. IPO applications on Lemonn are made through the UPI-ASBA route.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>ASBA &#x2014; Application Supported by Blocked Amount &#x2014; is the standard process for IPO applications in India. Instead of paying upfront, your bank blocks the application amount in your savings account; if shares are allotted, the blocked amount is debited; if not, it is released back to you. ASBA simplified IPO investing and is fully [&#x2026;]<\/p>\n","protected":false},"author":3,"featured_media":0,"menu_order":0,"template":"","meta":{"_uag_custom_page_level_css":"","footnotes":""},"class_list":["post-12171","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"web-stories-poster-portrait":false,"web-stories-publisher-logo":false,"web-stories-thumbnail":false},"uagb_author_info":{"display_name":"Ashutosh","author_link":"https:\/\/lemonn.co.in\/blog\/author\/ashu\/"},"uagb_comment_info":0,"uagb_excerpt":"ASBA &#x2014; Application Supported by Blocked Amount &#x2014; is the standard process for IPO applications in India. Instead of paying upfront, your bank blocks the application amount in your savings account; if shares are allotted, the blocked amount is debited; if not, it is released back to you. ASBA simplified IPO investing and is fully&hellip;","_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/12171","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"version-history":[{"count":0,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/12171\/revisions"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=12171"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}