Now you need not courier or travel across the city just to submit cheques of your clients. Transaction platforms such as BSE Star MF and NSE NMF II have started using bank branches to do this job for their distributors.
While BSE Star MF has tied up with Axis bank for cheque collection services, NSE NMF II works with HDFC Bank to collect cheques.
Until now distributors were required to submit cheques of clients at the office of registrar-and-transfer agents such as CAMS and Karvy. They had to do so for clients who chose cheques as their mode of payment.
Speaking about cheque collection services, Omkeshwar Singh, Head – Mutual Funds, BSE Star MF said that the move would benefit distributors in a big way. “Many distributors visit CAMS and Karvy offices to submit cheques of their clients. We feel that distributors should focus on growing their business instead of doing such mundane jobs. Hence, we have tied up with Axis Bank to help distributors. With this, distributors can submit cheques of their clients at any Axis Bank branch across the country,” he said.
Singh further said that distributors would have to generate a challan (receipt) number through the platform and deposit it in the bank using a pay-in slip in favour of Indian Clearing Corporation.
Chetan Doshi, Vice President, NSE NMF II said that their platform has tied up with HDFC Bank to provide cheque deposit services to its distributors. “Distributors are required to generate pay-in slips through our system and submit it to the bank or they can directly submit the cheque in favour of NSECL,” he added.
Doshi, however, believes that dependence on physical modes of payment like cheques has reduced substantially. “In our company, we have seen decline in the number of distributors using cheques to execute transaction. We had 35% of our overall transaction coming from cheques three years ago and currently we have less than 25% of our transactions through this mode of payment. Many investors prefer using online channels such as RTGS, NEFT and new channels like eMandate and UPI,” the NSE NMF II Vice President said.
