Does it happen to you that there is less money in the bank account and you have to make UPI payment? If yes, then there is nothing to panic now! Under a new feature, you can now make UPI payment directly from the money deposited in your mutual funds. However, this facility is currently available only through the bank’s savings account. This amazing is possible by the Fintech platform ‘Quree Money’, which has found a new way to connect the mutual funds with the UPI.
How to pay UPI from mutual fund units?
Nowadays, where banks pay only 2.7-2.75 percent interest on savings accounts, liquid mutual funds can give a return of up to 5-6%. Taking advantage of this, ‘Curie Money’ is providing such facility to its users so that they can make UPI payment and money can be deducted directly from their liquid mutual fund unit. This transaction is done through a bank account, making your investment a wallet to spend in a way. Let us tell you that ‘Curie’ works as a mutual fund distributor. At present, the number and amount of such transactions is still very low. It supports the accounts of many banks, but it works best due to its deep technical partnership with Yes Bank.
SEBI rule and curry method
In fact, the market regulator SEBI (SEBI) allowed ₹ 50,000 from liquid and overnite funds to immediately remove instant redemption (whichever is less) of investment. Asset Management Companies (AMC) This facility provides separate redemption requests, but ‘Curie’ connects it directly with UPI payments. This is the same as a normal UPI payment, the only difference is that when your mutual fund units are redeem, you get email and SMS alert from AMC.
But it has a small screw!
SEBI has neither allowed the UPI-linked redemption directly nor banned it from such funds. SEBI immediately allows to withdraw money, but does not explain how those money should be used.
Arindam Ghosh, the founder of ‘Curie Money’, told ‘Mint’, “When users extract their investment from liquid mutual funds through ‘Curie’, the money is directly deposited in their linked bank account. All the UPI transactions done with the ‘Curie’ app are from this bank account.” This means that ‘Curie’ does not actually connect the UPI transaction directly to the mutual fund unit to real-time. Rather, first the money comes to the user’s bank account and then UPI payment is made using the balance in that account.
NPCI clarification
According to the National Payments Corporation of India (NPCI), an organization developing the UPI network, the money withdrawn from mutual funds on ‘Curie Money’ is first deposited in the digital savings account of Yes Bank and then used for UPI payment. The account is received under the ‘Curie Money’ partnership with Yes Bank. Inside the ‘Curie Money’ app, ICICI Prudential Mutual Fund is provided with the facility of investment in mutual funds.
This is certainly a new and interesting development in the field of UPI payment, which can give investors another option to use their investment better.
