Now, apart from recharging phones and paying utility bills, you can use the digital wallet to invest in mutual funds.
In an attempt to utilize household savings into capital market and encourage digitalization in investment instruments, the Securities and Exchange Board of India (SEBI) on Wednesday allowed the use of e-wallet for investments in mutual funds. The investors will be permitted to purchase mutual funds worth up to ₹50,000 per year through digital wallets. The market regulator also specified that the redemption of such investments can be made only to a bank account of the holder. In a press release, SEBI stated-
Mutual Funds/Asset Management Companies (AMCs) can offer instant access facility (through online mode) of up to Rs 50,000 or 90% of folio value, whichever is lower, to resident individual investors in liquid schemes by applying lower of previous day NAV or prospective NAV. For providing such facility AMCs would not be allowed to borrow.
At the Board meeting, it also made clear that the e-wallet issuers should not offer any incentive such as cashback, directly or indirectly for investing in mutual fund schemes through them. Besides this, balance loaded through cash, debit card or net banking can only be used for subscribing to mutual fund schemes. However, the e-wallet balance loaded through credit card, cash back, promotional schemes would not be allowed for the subscription to mutual funds.