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MF News Now, buy mutual funds through UPI wallet

Now, buy mutual funds through UPI wallet

LIC MF and IDFC MF have introduced a new mode of payment through which investors can invest in mutual funds through e-payment wallets like Unified Payment Interface (UPI).
Nishant Patnaik Dec 27, 2016

LIC MF and IDFC MF have introduced a new mode of payment through which investors can invest in mutual funds through e-payment wallets like Unified Payment Interface (UPI).

Investing in mutual funds just got simpler. Recently, IDFC Mutual Fund and LIC Mutual Fund have introduced an additional mode of payment through which investors can execute transactions in mutual funds through e-payment wallets like Unified Payment Interface (UPI).

UPI is a next generation payment system pioneered by NPCI that allows account holders across banks to make payments using their VPA (Virtual Payment Address).

Both LIC and IDFC are providing this facility to their existing as well as new investors for lumpsum purchases. Subsequently, this facility will be extended to SIPs. However, there is a statutory per transaction limit of Rs. 1 lakh.

Sarojini Dikhale, CEO, LIC Mutual Fund MF said that this facility will enable investors to invest with more ease. “We are very excited with this offering which is not only Industry first but also in line with our strategic vision towards digital transformation,” said Sarojini Dikhale.  

In a press release, Vishal Kapoor, CEO, IDFC AMC has said, “UPI is expected to change the way consumers transact, and is indeed the next step towards a cashless, efficient and secure payment system. With UPI as a payment facility, investors will have the additional choice of making a seamless transaction on the IDFC MF website from any bank account, with a real-time payment experience and without having to divulge sensitive information. We are one of the early adopters of this technology, and invite our investors to leverage it to their benefit.”

IDFC MF has partnered with IDFC Bank while LIC MF has tied up with Standard Chartered Bank to provide this service.

How does it work

On selecting UPI as the payment option during an online purchase, the investor will be prompted to enter her VPA. A simple authorisation by the investor on her UPI mobile application will complete the transaction.

Apart from fund houses, stock exchange platforms like BSE Star MF are also ready with the infrastructure for accepting payments through e-wallets like UPI, Paytm, FreeCharge and Mobikwik. BSE will provide this service once it gets a nod from SEBI.

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