Reliance Mutual Fund – Why don’t you try IMPS a payment tool?

The Mutual fund industry is looking at ground-breaking collection mechanisms to increase the AUM under its fold.

The primary MF collection mechanisms are PDC’s(Post Dated Cheques), Direct Debit, ECS(Electronic Clearing Services), Cash-upto Rs20,000/-, NEFT/RTGS, online via Credit Card/Debit Card/internet banking. Each collection tool has its own TAT and associated collection costs and risks.

NEFT/RTGS are mainly adopted for redemption payouts rather than collections.

Reliance Mutual Fund has added the IMPS mode to its collection tools. RMF is the first adopter of this new ePayments tool on the block.

HSBC has partnered with RMF to launch this new initiative. HSBC entered the IMPS platform, with a direct launch of IMPS person-to-Merchant (P2M) option in May 12.

RMF customers who are existing IMPS registered customers can invest instantaneously by sending SMS ‘START IMPS’ to 9243 777 710 and to stop they can SMS ‘STOP IMPS’ to 9243 777 710.

The main advantage RMF will have with IMPS, is that

01)   The TAT is reduced to seconds.

02)   There is no question of cheque/direct debit/ecs bouncing.

It would be a nice customer gesture, if the reduced transaction costs are shared with the mutual fund investor too.

There will be initial investment in terms enhancements to IT infrastructure, but this will be more than offset with reduction in the collection costs.

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