E-mandate facility would help members or MF distributors to reduce the SIP registration cycle to just two to three days
National Stock Exchange of India (NSE), has introduced an E-mandate facility for its mutual fund platform, with immediate effect, a release from NSE stated today.
The E-mandate facility would help members, or MF distributors, to reduce the SIP registration cycle to just two to three days, as compared to two to three weeks earlier.
Currently, members, or 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.
Vikram Limaye, Managing Director & Chief Executive Officer, NSE said: “Implementation of E-mandates is a very significant step towards digitisation of transactions in mutual funds. The objective is to offer simple and hassle-free alternative to the members/MF distributors in form of e-mandate wherein the members/MF distributors can register mandate of an investor online, which will be digitally signed based on Aadhar based OTP validation."
Digital platforms will be the game changers for Indian Mutual Fund industry. As per UIDAI website, there are approximately 119 crore Aadhar numbers, which holds a huge potential for mutual fund industry which currently has 6.2 crore folios only.
E-Mandate is available for individuals with single mode of holding
Currently, maximum limit for E-mandate is INR 100,000
E-mandate is an Aadhar based functionality, accordingly, registration of mobile number with UIDAI is mandatory for e-signing of mandate
Updation of Aadhar number in bank account on which mandate is being registered is mandatory for mandate registration
E-mandate can be registered for the banks enabled by NPCI for the same
At present 28 banks are participating for e-mandate service through NPCI
In the current financial year until December 15, 2017 around 48 lakh transactions aggregating to Rs. 23,345 crores have been processed through its MF platform.
In last two years NSE has registered a growth of more than 600 percent in number of transactions, routed through its MF platform.
Further, the number of SIP accounts on the platform have increased from 0.85 lakhs as on March 31, 2015 to 4.45 lakhs as on December 15, 2017.Follow @HimadriBuch