NSE NMF II has introduced e-mandate facility on its mutual fund platform with immediate effect.
The e-mandate facility would help MF distributors to reduce the SIP registration cycle to just two to three days, as compared to two to three weeks earlier. Currently, MF distributors register paper based mandates for their investors, which is time consuming as it involves obtaining signature of an investor on the form and submission of physical form at service centre for processing.
In a press release, Vikram Limaye, MD & CEO, NSE said, “The objective is to offer simple and hassle free alternative to the MF distributors in form of e-mandate wherein the they can register mandate of an investor online, which will be digitally signed based on Aadhaar based OTP validation.’’
The company believes that digital platforms will be the game changers for Indian mutual fund industry. As per UIDAI website, there are approximately 119 crore Aadhaar numbers, which holds a huge potential for mutual fund industry which currently has 6.2 crore folios only, said the company.
NSE has implemented e-mandates through HSBC (sponsor bank for the initiative) along with E-Mudhra (Certifying Authority licensed by Controller of Certifying Authorities, under Government of India) as an E-sign service provider.
Key features of this facility:
• e-mandate is available for individuals with single mode of holding
• Currently, maximum limit for e-mandate is Rs.1 lakh
• e-mandate is an Aadhaar based functionality, accordingly, registration of mobile number with UIDAI is mandatory for e-signing of mandate
• Updation of Aadhar number in bank account on which mandate is being registered is mandatory for mandate registration
• e-mandate can be registered for the banks enabled by NPCI for the same
• At present 28 banks are participating for e-mandate service through NPCI
The number of SIP accounts on the platform have increased from 85,000 as on March 31, 2015 to 4.45 lakhs as on December 15, 2017.
