ETMONEY launched India’s first Aadhaar-based Systematic Investment Plan(SIP) payments feature. This feature will enable anyone to start a SIP online and make automatic payments using a simple Aadhaar based One-Time Password (OTP) verification.
About the Aadhaar based SIP payment feature:
Objective: To make investments more seamless and accessible to the widest section of Indian society.
OTP verification feature:
The Aadhaar-linked SIP payment will enable more Indians to invest regularly through SIPs as more than 100 crore bank accounts are linked in Aadhar and as the payment is done through OTP verification, it makes the online investment easier.
Easier payment mandates:
As SIPs will do monthly investments through automated payment, the new feature will set up the users SIP mandates (automated SIP payment) easily through their Aadhaar linked bank accounts.
About Systematic Investment Plan (SIP):
- It is a kind of investment in Mutual Funds in which one can invest a small sum of a fixed amount in a preferred Mutual Fund scheme at regular intervals (once a month or once a quarter) instead of making a lump-sum investment.
- SIP (payment mandates): By activating a SIP, a fixed amount will be deducted from the customer’s bank account every month and invested in their mutual funds (similar to a recurring deposit).
Recent Related News:
On January 10, 2020, the Reserve Bank of India (RBI) permitted the processing of e-mandate for recurring payments through UPI (Unified Payments Interface). This direction has been issued under Section 10 (2) read with Section 18 of Payment and Settlement Systems Act, 2007 (Act 51 of 2007).
Establishment – 2015
Head office – Gurugram, Haryana
Founder & CEO – Mukesh Kalra