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In an industry-first initiative, IDFC Mutual Fund has enabled UPI AutoPay, allowing mutual fund investors to use their existing Unified Payments Interface (UPI) applications to create a mandate for autopay facility for their systematic investment plans (SIPs).
UPI AutoPay is a National Payments Corporation of India (NPCI) initiative that can be used via existing applications such as Google Pay, PhonePe, Paytm, BHIM and Amazon Pay, among others.
Investors can initiate the SIP registration on the IDFC Mutual Fund portal by entering their virtual payment address (VPA)/UPI handle, followed by a one-time authentication of the mandate in their UPI application.
Vishal Kapoor, chief executive officer, IDFC AMC, said, “The mutual fund industry aims to reach 10 crore investors by the end of this decade, to achieve this, it is critical to onboard investors in a hassle-free manner. IDFC Mutual Fund is glad to pioneer UPI AutoPay in the mutual fund industry, aimed at reducing the wait time between registration and commencement of investments via SIP. Additionally, investors can easily pause, modify, or cancel the mandate through the application, as the need arises. This will stop potential investors from losing interest or deferring their investments."
As per the fund house, UPI AutoPay offers a plethora of benefits to its users. The SIP installment could commence after five calendar days of registering the mandate. In addition, the instruction to debit the investor’s account would be sent on the date of the installment for the immediate realization of funds in the scheme account with the NAV of the same day. At present, an investor can invest up to ₹5000 per transaction using UPI AutoPay.
Nalin Bansal, chief of corporate and fintech relationships and key initiatives, NPCI said, “With the integration of UPI AutoPay, IDFC Mutual Fund investors can now set e-mandates within a few seconds, which in turn will completely transform the consumer experience in terms of their SIP payments. UPI AutoPay has the potential to create a valuable user engagement journey and we are confident that the addition of this unique feature is going to be a game-changer in the mutual fund space."
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