As India gets hitched on the digital payments bandwagon, Mutual Funds too are making their appearance on the scene, considering the value of digital transactions stood at Rs 208 crore in the last fiscal, reports Mint. While two funds began accepting payments via the National Payments Corporation of India’s (NPCI’s) Unified Payments Interface (UPI) late last year, a number of new ones have begun doing the same this year.
Enabling UPI transactions in mutual funds allows for funds to be added in under 24 hours, as opposed to conventional internet banking that could take up to three days. However, funds have been capped at Rs 1 lakh.
The biggest advantage of enabling UPI is for liquid funds that do not allot units in the mutual fund to the investor unless the money is in the account. However, given that UPI reduces the transaction time, it is certainly going to be a boon in the sector.
Not all mutual funds are on the platform yet, but are expected to roll out UPI support soon.
With the financial sector going all out to promote mutual funds through their ‘Mutual Funds Sahi Hai’ campaign, getting on the the UPI highway seems to be a good move to attract more investors.
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