Mumbai, March 24: Investors can now buy and sell mutual funds via mobile text messages.
Icra Online Ltd, the wholly owned subsidiary of credit rating agency Icra, today set up a new payment platform in collaboration with the Society for Worldwide Interbank Financial Telecommunication (SWIFT).
The facility, which will initially focus on mutual fund transactions, will allow users to transfer funds via mobile messaging or emails.
According to senior officials of Icra Online, the facility will benefit both investors and asset management companies (AMCs).
Investors who are not comfortable with net banking or payment through cheques can avail themselves of the new service.
Fund houses will not have to wait for three days for a cheque to be cleared.
A memorandum of understanding between Icra Online and SWIFT was signed here today.
Icra group CEO and vice-chairman P.K. Choudhury said the platform would effectively make use of a secure mobile messaging system.
Mobile messaging or email messaging will seek to resolve the last mile payment issues for investors not comfortable with net banking, Choudhury said.
The new platform will be easy to use and even a semi-literate client will be able to transfer funds electronically through the new platform.
While the facility is expected to be operational by the fourth quarter of this calendar year, both the partners are in the process of seeking approvals from the Reserve Bank of India.