MF Utility – an introduction
MF Utility (MFU) is a “Transaction Aggregating Portal” that electronically connects:
Investors
Distributors
Collection Banks
Payment Aggregators
Mutual Fund Houses
RTAs
Why MFU?
INCONVENIENCES faced by Investors / Distributors:
Separate Application forms, separate payment instruments/instructions
Separate Folios for each Mutual Fund
Restricted geographical reach
Different Scheme cut-offs, different locations for submission of transactions
“Points of Acceptances” specific to Fund
Information from different sources i.e. different AMCs/RTAs
Different features, procedures, processes, formats, standards
Limited self-service capabilities
Duplication of activities
MF Utility – Mission & Vision
MISSION
To provide reliable & resilient value-added network & application services for B2B and B2C initiatives that:
minimize risk
promote timely, efficient and automated interactions at reduced costs
VISION
To be the change “we want” for the Mutual Fund Industry and its Stakeholders.
MF Utility – Objectives
Single identifier Common Account Number (CAN) for all Investments
Single cheque and application for investments across Mutual Funds
Standardization of processes
One view for customers and distributors
Consolidated Industry MIS
Increased geographical reach
Improved data quality
MF Utility – Objectives - Contd ...
Enhanced self service capability
Value added services for all stakeholders – alerts, triggers, reminders, etc.
High degree of operational efficiency with reduced risks
Scalable to facilitate growth of business
Enable digitization of transactions
Inclusive for all stakeholders
Common Account Number (CAN)
Single reference number issued by MFU
Created for a unique combination
Number of Investors
Holding Pattern (Order & Mode of holding)
Investor Type (Individual, Non-Individual)
Investor Category (Individual, Minor, Sole-Proprietor) within Individual Investors
Tax Status (Individual Investors)
Bank Account Type (NRE, NRO etc.) within Non-Resident Individuals
Common Account Number (CAN) - Contd ...
Shared only with respective AMCs / RTAs where transacted
CAN will hold the following information centrally for the industry:
Investor Name/s
Nationality, Tax Status, Mode of Holding, Guardian Information
Contact details of the primary holder
Multiple Bank mandates commonly registered at CAN level for the industry
Depository Account details
Power of Attorney, if any
What’s New?
Sign-up with MFU for Distributors
“Common Account Number – CAN” for investors, opened through MFU – single documentation process
Centralized Transaction submission and payment
Centralized NCT management through CAN
Centralized Complaint Management
Benefits of MFU for You
Single form for multiple transactions thereby reducing burden of handling multiple transaction documents
Single payment for multiple purchase transactions thereby reducing burden of handling multiple payment instruments
Single point time stamping of transactions, thereby reducing burden of submitting transactions at different offices/locations
Benefits of MFU for You - Contd ...
Multiple methods of transaction submission
Single point for requesting information
Consolidated industry view based on CAN
Eliminate duplication of processes/documentation
Standardization of Forms, Processes etc.
Comparison - Current Vs. MFU
Activity
Current
MFU
Account Opening
Fund Level - Separate Folios
Centralized - MFU CAN
Time Stamping
RTA - Fund Level - Multiple
Single - MFU
Document Submission
RTA - Fund Level - Multiple
Centralized - MFU
Data Feeds
RTA Level - Multiple
Centralized - MFU
Subscription Payment
Fund Level - Multiple
Centralized - MFU
NCTs
Folio Level - Multiple
Common - MFU
Complaint Registration
Fund Level - Multiple
Centralized - MFU