The process of setting up SIPs at MF Utility just got simpler.
MFU has introduced an online PayEezz registration feature “ePayEezz”. Not only can this feature do away with the need for physical forms but also reduce the registration time from a few weeks to a couple of days.
What is PayEezz?
PayEezz is one-time ECS/NACH mandate form that you give to MF Utility. With this mandate, you give authorisation to MFU to debit your bank account up to a certain limit per transaction.
Please understand PayEezz is one of the payment modes. The other payment modes are net banking, NEFT and RTGS.
Therefore, if you plan to make a lumpsum purchase, you can use either of the payment modes to purchase units. For instance, if you choose net banking as the payment mode, you will be redirected to your bank’s website and you can use your login credentials to approve/complete the payment.
In case of PayEezz, since MFU already has the authorization to debit your account, you do not have to enter any bank login credentials. You just need to select the payment mode as PayEezz and submit the transaction.
For more on how to purchase units through MFUtility online, watch this video.
However, things are a bit different in case of a SIP. SIP work on auto-mode. The money gets debited automatically from your bank account and the purchased units get automatically credited to your mutual fund account. You need PayEezz mandate (to be set up) if you want to start SIP through MF Utility.
In case of a SIP, MF Utility needs permission to debit your bank account for the SIP instalment. And PayEezz form provides it with that permission. The form goes to your bank and the bank makes an entry in its record. Subsequently, whenever the bank receives a debit request from MFU (for SIP instalment or when payment mode is PayEezz for lumpsum purchase), it permits the debit.
How do I set up PayEezz mandate?
It is quite simple. You need to fill up a single page form and attached cancelled cheque leaf with the form.
You can then send the form to MFU office in Thane by courier. Alternatively, you can also submit forms at CAMS and Karvy centres.
Once MFU receives the form, it takes up to 3-4 weeks for the PayEezz mandate to be set up. As mentioned earlier, the form is sent to the bank for approval.
I am sure this step is a deterrent for many investors. You have to send the physical form and wait for a few weeks. If the form is rejected (by bank or MFU) for any reason, you have to repeat the cycle again. Happened with a few of my clients. Can test patience sometimes.
Opening of CAN (for existing mutual fund investors) became online many months back. So, investors could create CAN online. However, setting up a SIP required PayEezz mandate to be set up (which had to be done offline). Most retail investors find comfort in investing by way of SIPs.
Because of the physical PayEezz process, the complete investment process could not be done online.
Now, this has changed.
PayEezz registration is now online with ePayEezz
Now, PayEezz registration can also be done online with the introduction of ePayEezz.
Moreover, the entire registration time is likely to be cut short from 3-4 weeks to a couple of days.
As I understand, the online PayEezz registration request (ePayEezz) needs to be approved by the bank within 2 days.
How can I register under ePayEezz?
You will get to option once you login into MFU website (mfuonline.com).
You can click on ePayEezz tab under Account Maintenance.
Fill the details as requested.
You are required to sign eSign the mandate form.
For that, you will be asked to enter your Aadhar number. You will receive OTP on your Aadhar register mobile number. Enter the OTP and submit the form.
Points to Note about ePayEezz
- You can submit ePayEezz request only for the account that is already registered under CAN.
- If the bank account (that you want to set up ePayEezz for) is not yet registered under your CAN, you need to first send Bank Account Addition form to MFU. Along with the form, you need to send cancelled cheque of the new account (to be added) and the existing bank account (already registered under CAN). You can see this step is still offline/physical. In my opinion, this is to prevent frauds.
- ePayEezz can be used only for CANs under “Single” or “Anyone or Survivor” holding mode.
- ePayEezz can’t be used for CANs held under Joint holding mode.
- For CANs held by minors or NRIs, ePayEezz can’t be registered.
- Your mobile number must be registered in your Aadhaar card. Aadhaar number must be updated in your bank account.
- Under ePayEezz, the maximum amount cannot exceed Rs 1 lacs per mandate per bank. Under the physical PayEezz form, the maximum limit is Rs 1 crore.
- You can expect ePayEezz mandate to be registered within 48 hours. Actual timelines may vary.
- There are no charges for ePayEezz.
- You can register as many ePayEezz as you want.
What could be the potential reasons for rejection of ePayEezz request?
I am listing the reasons as mentioned on MFU website.
- Mode of operation for the bank account is Joint.
- Aadhaar is not linked to your bank account.
- Bank does not respond to ePayEezz registration request within 48 hours. As per NCPI rules, no response within 48 hours is deemed rejection.
Do refer to ePayEezz FAQs on MFU website.
Demo: How to complete ePayEezz registration
- Go to mfuonline.com and log in.
- Select ePayEezz registration under “Account “
- You can view all your registered bank accounts. You can click the “Edit” icon to start ePayEezz registration. As mentioned above, if the account that you want to add is not present in the list, you will need to first add the bank account by filling up a physical form.
- Most of the details are pre-filled. You can enter the requisite details including the mandate amount. Remember the maximum amount under ePayEezz mandate is Rs 1 lac. By selecting “Perpetual Flag”, you specify that this mandate runs forever. As mentioned earlier, ePayEezz mandate is not for NRIs.
- You will be taken to BillDesk gateway and will be asked to enter your Aadhaar number. Remember Aadhaar is necesaary for e-signging the form.
- You will get an OTP for on your Aadhaar registered mobile number to e-sign the form.
- Once you click submit, you are through. You will get confirmation from MFU about acceptance of the ePayEezz request. Remember, this is confirmation from MFU. The bank is yet to confirm. As I understand, the confirmation from the bank must come within a couple of days.
How do I check the status of my ePayEezz request?
You need to select “ePayEezz registration” under Status tab.
Currently, the status shows as “Request Acknowledged by Aggregator”.
Once your bank accepts the request, the status will change to “Aggregator accepted”.
How long does it take for ePayEezz registration?
I had initiated ePayEezz registration on March 15th. Got confirmation from the bank on March 17th. MFU confirmed the PRN (PayEezz registration number on March 19th. Turnaround time of 2-4 days is quite awesome.