Key Highlights:1) Monetary Limit: Mutual Funds (MFs) / Asset Management Companies (AMCs) can offer instant access facility (through online mode) upto INR 50,000 or 90% of folio value, whichever is lower, to resident individual investors in liquid schemes by applying lower of Previous Day Net Asset Value or Net Asset Value of Day on which application is received. 2) Liquidity:
- Liquidity is to be provided out of the available funds from the scheme and MFs/AMCs to put in place a mechanism to meet the liquidity demands.
- For providing such facility MFs/AMCs would not be allowed to borrow.
- Investment of upto INR 50,000 per Mutual Fund per financial year can be made using e-wallets. However, redemptions of such investments can be made only to a bank account of the unit holder.
- MFs/AMCs must not offer any incentive such as cash back etc., directly or indirectly for investing in mutual fund scheme through them.
- E-wallet’s balance loaded through cash or debit card or net banking, can only be used for subscription to mutual funds schemes and balance loaded through credit card, cash back, promotional scheme etc. should not be allowed for subscription to MF schemes.
- Further, this limit of INR 50,000 would be an umbrella limit for investment by an investor through e-wallet and/or cash, per mutual fund per financial year.