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SEBI has asked fund houses to ensure that investors use KYC complaint e-wallets to execute transactions in mutual funds.
In a circular, SEBI said, “It should be ensured that all e-wallets are fully compliant with KYC norms as prescribed by Reserve Bank of India.”
This will come into effect from May 01, 2023.
While SEBI has allowed fund houses to receive up to Rs.50,000 per fund house per financial year through e-wallet in 2017, it has found hardly any takers.
e-wallet is an online pre-paid account which can be used by people to recharge mobiles, buy movie tickets and much more. Paytm and PhonePe are among the e-wallets with the largest user base in India. But many people use these platforms to make payments through UPI. They do not prefer putting money in such wallets.
