Now you will not be able to pay through check in Mutual Fund! This facility is going to be closed, know why this decision was taken

If you invest in Mutual Funds then this is big news for you. The matter is related to Mutual Fund Payment. Actually, mutual fund transaction aggregation portal MF Utilities (MFU) is going to stop payment facility through physical instruments from 31 March 2022.

Physical Instrument means Cheques, Demand Draft, Transfer Letters, Banker’s Cheque, Pay Order, through which you make payment for investment in Mutual Funds. Huh. But, from March 31, MF utilities will not take payment through these means, that is, if you invest in mutual funds through MF utilities, then from April 1, 2022, you will have to use some other medium for payment.

Decision taken due to system improvement
Ganesh Ram, managing director and CEO, MF Utilities, says that as per the rules of market regulator SEBI, payment through check can only be accepted by a clearing corporation or an asset management company. MF Utilities said that from April 1, 2022, payment facility through eCollection payment mode i.e. NEFC / RTGS / IMPS will also not be available on its platform. That is, through these mediums you will not be able to make payment from April 1, 2022. The firm says that this decision has been taken due to the improvement in the system. Till the time the decision on payment mode can be taken only after thorough improvement and test.

Net banking and UPI not affected
It should be noted for investors that the system update will not have any impact on payments through PayEezz (one-time or multiple SIP registration facility on the platform), net banking and UPI. That is, through these mediums you can easily make payment. Viral Bhatta, Founder, Money Mantra says that those investing in mutual funds through MF utilities should use it for sign up payments on PayEezz. UPI is also a convenient option for small investors.