Quantum Mutual Fund has offered prepaid cards as an online payment option to its investors. Quantum Mutual Fund’s Invest Online platform allows investors to complete their mutual fund transactions and then select ‘Prepaid Card’ as the payment option. Investors will then have to enter their prepaid card number to complete their transaction. This feature is available only for online investors. The transaction limit for investments via such prepaid cards is Rs50,000. Quantum is initially accepting such payments only through iCash Cards which offer a safe and easy payment option to Indian investors.
The RBI has asked banks to develop a unique system of customer identification. The system could be used by all banks while evaluating loan proposals for retail as well as corporate customers.
Unique customer identification is essential as banks have limited knowledge about borrowers’ credit history. RBI stated that the system would solve problems of multiple lending in which a customer can avail loans from more than one bank. The RBI’s financial stability board had backed the idea. RBI said it expected banks to use credit bureau information not just for retail borrowers but for corporate houses as well. “Without proper credit info, bank lending will be sub-optimal with bad borrowers. Also, credit info will help in increasing lending to SMEs and the poor,” said Anand Sinha, deputy governor, RBI.
The National Stock Exchange (NSE) launched a know-your-customer registration agency (KRA) through its subsidiary Dotex International. The move comes in the wake of a specific directive from the SEBI to start KRAs. “Brokers who have been working with us had approached us to provide them with this additional service... So, NSE has decided to offer this facility through Dotex,” NSE said in a statement. The initiative will benefit investors as their paper work will be reduced and they have the option of going to another intermediary without repeating the KYC formalities.