Mutual Fund

MF Utilities to discontinue cheques as a payment mode

MF Utilities (MFU), a mutual fund transaction aggregation portal, announced that it will discontinue physical instruments (cheques, Demand Draft, Transfer Letters, Banker’s Cheque, Pay Order) as a payment mode with effect from 31st March 2022 post scheme/market cut off time.

 “As per SEBI, a cheque can now be accepted only by a clearing corporation or an asset management company,” said Ganesh Ram, Managing Director & CEO, MF Utility.

The eCollection payment mode – NEFT/RTGS/ IMPS – will also not be available on the platform from 1st April 2022 onwards. As per the MFU, there is a major system development and banks/payment aggregators are still working on the necessary solution and it will not be available till the solution is tested and implemented.

The update is part of an announcement by MFU with respect to various payment modes that will be available with effect from April 1, 2022 on the platform.

Note that the mandates given via PayEezz (a facility for registration of lumpsum or multiple SIPs on the platform), and the transactions through net banking and UPI facility will be not be impacted.

“Investors should sign up for Payezz if they are using MF Utilities. This enables a bank mandate to be created and hence automatic debit for all lump-sum purchases and SIPs. For small ticket investors, UPI is also a convenient option,” said Viral Bhatt, founder, Money Mantra.

As per their website, MFU will also discontinue physical CAN (common account number) registration (for Individuals) with effect from 1st April 2022; Common Account Number serves as a single reference for all mutual fund investments with MFU.

One can complete the CAN registration process completely online via eCAN, a facility offered by MFU, where an investor can submit all the data required for opening an account electronically. 

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