In a first for India’s mutual fund market, Quantum Mutual Fund is supporting prepaid cards as an option for its investors for use when buying mutual fund units, Quantum Asset Management Co. Pvt. Ltd. announced earlier this month.
Quantum claims to be India’s first paperless online mutual fund in a market that traditionally has relied on paper-based subscriptions and payments. Only recently, the sector has started using online banking for payments.
However, Quantum will now accept iCashcard, a multi-service, reloadable prepaid card issued by Chennai-based GI Technology Pvt. Ltd.
Payments using the prepaid card are made online on the Quantum Mutual Fund portal, according to a spokesperson. Investors have to enter their prepaid card number to initiate the transaction.
Quantum Mutual is offering prepaid cards to cater to investors still wary of or uncomfortable with using online banking to transact, the spokesperson says. The transaction limit for such investments is 50,000 rupees (US$1,000 or 760 euros), which is in line with rules the Reserve Bank of India set last year for online and mobile payments, he says.
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