ASBA, which stands for Applications Supported by Blocked Amount, is a mechanism introduced in the banking sector to facilitate the subscription of initial public offerings (IPOs) and rights issues. It is a process that allows investors to apply for shares without having to make the full payment upfront.

ASBA has been implemented to enhance the efficiency and transparency of the IPO and rights issue process in the banking sector. It provides investors with greater flexibility and convenience while ensuring the safety and security of their funds.