A blocked amount in UPI refers to the money held in your bank account when you place a bid for an IPO. This amount is not immediately debited but is temporarily held. Here's how it works:
- Temporary Hold: The amount is not deducted from your account but is placed on hold.
- No Allotment: If you don't receive shares, the blocked amount is released within a few days after the IPO closes.
- Allotment Received: If shares are allotted, the amount is debited to complete the purchase.
This process ensures that your money is only used if shares are allocated, keeping your balance safe.