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UPI plays a key role in blocking, debiting, and releasing funds during the IPO process. When you approve the UPI mandate, the application amount is blocked in your bank account and remains blocked until the allotment is finalised.
If you receive a partial allotment, only the amount required for the allotted shares is debited, and the remaining blocked balance is automatically unblocked. If you do not receive any shares, the entire blocked amount is released back to your account, usually on the allotment or refund date as per the IPO timeline.
If an IPO application expires, is withdrawn, or gets rejected, the blocked amount is also unblocked automatically. If you do not have sufficient balance at the time of approving the UPI mandate, the mandate will fail and the IPO application will be considered invalid.
In rare cases where the amount appears blocked twice, one block is usually released automatically. If it does not get released within the expected timeline, you should first contact your bank or UPI app support. For application-related issues such as bid status or rejection, your broker is the right point of contact
