2B CHAPTER 13

Electronic payment instruments are modern facilities, where the clearing process need not be initiated by the mutual fund

NEFT is a nation-wide payment system facilitating to move funds electronically from one account to another

RTGS is a facility to move funds electronically batch wise

ASBA is a payment facility available to investors for all mutual fund NFOs

Digital payments such as Net Banking, Debit cards, Unified Payment Interface (UPI) are amongst the accepted modes of payments for mutual fund schemes currently.

In modern banking, there is no practical difference between a local cheque and outstation cheque.

A cheque issued by any person other than the investor of the mutual fund investment is a third-party cheque.

Investment can be made in cash, repayments in the form of redemptions, dividend payments, etc. Can be paid only through banking channel

Investment Accounts are maintained by the custodian bank, to settle securities transactions.

A mutual fund scheme may appoint one or more collecting bankers