wordpress blog stats
Connect with us

Hi, what are you looking for?

NPCI glitch leaves mutual fund investors empty handed

In an "unfortunate" incident, an upgrade to the National Automated Clearing House (NACH) system earlier this month left many mutual fund investors in the wind as their monthly payments did not go through. Thousands of investors have found that their payments to mutual funds got stuck due to a glitch in the NACH system which was being upgraded by the National Payments Corporation of India (NPCI), the Economic Times reported. On January 31, the NPCI was upgrading the NACH system but this coincided with a new rule by the Securities and Exchange Board of India (SEBI) which mandated that mutual funds should receive investors' funds and only then allot units to investors for orders up to Rs 2 lakh. The new rules came into effect from February 1, 2021. “We have recently migrated our systems with an objective to scale the NACH infrastructure to meet the increasing volume requirements and industry demands. This was a planned migration activity and during which we faced some initial teething issues such as delay in settlement. Unfortunately our migration coincided with the regulatory rule effected from 1st Feb. 2021, that NAV [Net Asset Value] should be realised only after the funds received by the Mutual Funds," NPCI said in a statement on Wednesday. Due to the simultaneous upgrade by NPCI and SEBI's new rule, lakhs of mutual fund transactions failed to go through leading to reconciliation issues for payment gateways. At least 500,000 to 1 million transactions from investors to mutual fund houses got…

Please subscribe/login to read the full story.
Written By

Reports on banking, payments, fintech and crypto-curencies. Additional reporting on media regulations, data protection and other areas.

Free Reads

News

Bankman-Fried has also been ordered to forfeit $11 billion to repay the aggrieved customers of his crypto-exchange platform FTX.

Amazon

According to UOKiK, Amazon misled users into believing that placing an order or receiving an order confirmation was tantamount to a sales contract, which...

News

The ECI found Shrinate's comments to be in ‘undignified and in bad taste’ and to be prima facie violative of the ‘Model Code of...

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

NPCI CEO Dilip Asbe recently said that what is not written in regulations is a no-go for fintech entities. But following this advice could...

News

Notably, Indus Appstore will allow app developers to use third-party billing systems for in-app billing without having to pay any commission to Indus, a...

News

The existing commission-based model, which companies like Uber and Ola have used for a long time and still stick to, has received criticism from...

News

Factors like Indus not charging developers any commission for in-app payments and antitrust orders issued by India's competition regulator against Google could contribute to...

News

Is open-sourcing of AI, and the use cases that come with it, a good starting point to discuss the responsibility and liability of AI?...

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ