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MF News A single mandate for all fund houses

A single mandate for all fund houses

PAN based e-mandate will help you initiate SIPs in all CAMS serviced fund houses.
Nishant Patnaik May 11, 2018

Now, you can initiate SIP across fund houses through a single SIP mandate.

CAMS has introduced a new facility called PAN based e mandate through which you can initiate SIPs in all CAMS serviced fund houses through a single mandate. In an email communication, CAMS said that this would simplify sales process of distributors as the e mandate eliminates paper work and process time associated with separate mandate registrations for each SIP across all CAMS serviced funds.

So far, distributors need to take separate mandate for different schemes. With this, distributors can take one time mandate with a certain limit of say Rs.50,000 per day to initiate SIPs across schemes.

Your clients can create a PAN based common e mandate electronically by using eSign facility. All your clients need to have is Aadhaar. However, ensure that they link their Aadhaar with the bank account before setting up e mandate.

Once your clients create e mandate, they can execute new SIPs, renew existing SIPs and modify SIP amount online. They can also use this e mandate for lump sum transaction across folios without net banking.

Another key advantage of e mandate is a reduced turnaround time. The e-mandate facility reduces the SIP registration cycle to just two to three days, as compared to two to three weeks earlier. So far, 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.

Here are other key benefits of e mandate:

  • Paperless set up of One Time Mandate with e Sign
  • Minimal data input requirement. The system automatically captures most details from existing folios
  • The turnaround time to commence a SIP is just 7 days
  • There will be no restriction on SIP dates. You can set up SIP as and when presented. Also, there is no limit on the number of SIPs.
  • No need to submit cheque or do net banking for lump sum transactions. Investors simply have to select e mandate as payment option or quote the unique mandate registration number and submit transaction.

You can use this facility on CAMS website and mobile app myCAMS. CAMS plans to offer this facility on the websites of AMCs and distributors in future.

4 Comments
Sanjay Bangar · 1 week ago
Once again CAMS have prooved, that they are so concern about AMC. Although its a great innovation, but it will help AMC to collect Direct business more and more.
Sanjay Bangar · 1 week ago
Once again CAMS have prooved, that they are so concern about AMC. Although its a great innovation, but it will help AMC to collect Direct business more and more.
Ashok K Sharma · 1 week ago
This eMandate facility only for CAMS Registrar AMC ...?
Under KARVY Registrar AMC like Reliance, Motilal, Canara, Mirae, Axis etc..also possible to invest through the eMandare facility....?
Sinha ki · 1 week ago
Once again more n more investors r motivated to direct Nav. Unless the ARN holders take a stance n fight arn will become the last thing in mf business. CAms step will divert the client to direct Nav as he will now take cams as his advisor since depencdy on agents is only for such complicated tasks. Intelligent client by them select schemes as such in mkt
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