NPCI apologises to investors, starts exclusive clearing system for MFs

Topics NPCI | payments app | Mutual Funds

National Automated Clearing House, or NACH is a web-based solution to facilitate interbank and electronic transactions
National Payments Corporation of India (NPCI) on Wednesday said it “regret the unwarranted inconvenience” caused to the mutual fund (MF) investors caused by “migration of systems”

It further said that it has launched exclusive clearing session for MFs to ensure faster clearing of payments.

Last week, several mutual fund investors had faced glitches in payments through the unified payments interface (UPI) route, a real-time payment system developed by NPCI.

 “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 February 1, 2021, that NAV should be realised only after the funds received by the mutual funds,” it said.

Starting this month, MF houses can only allot units against orders in upwards of Rs 200,000 only after funds get credited.

So far this month, the benchmark Sensex has rallied more than 10 per cent. Several investors have cried foul over missing out on the rally due to the glitches at NPCI.

“Most of the early issues observed in this regard are already solved and we are working with our bank and fintech partners to sort out any unresolved pendency,” NPCI has said.

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