[Std 05] August Month Unit test Question Paper & Solution 2020
NACH stands for National Automated Clearing House. It denotes the mechanism of automated payments from the bank account of the investor, thereby facilitating the entire investment process. The investor needs to provide a one-time mandate to the mutual funds by authorising a nominal payment from the bank account through the net banking portal
NACH is operated by National Payments Corporation of India (NPCI), which offers different institutions like mutual funds to receive payments periodically based on One Time Mandate (OTM). For example, an investor registering OTM with UTI Mutual Fund will automate the investment process for the investors, as the NACH mandate deducts the amounts automatically from the investor's bank account. Such a mandate may be used to make investments in the mutual fund scheme of investor's choice. As such, NACH mandate allows the investors to undertake paperless mutual fund investment conveniently. In terms of the stipulations set by NPCI, the investor may set a One Time Mandate for an amount up to a maximum of Rs. 1 lakh.
Process of Registration of NACH Mandate with UTI MF
UTI MF allows the investors to register NACH Mandate in a simple 4-step process as below:
1. Log in to the Investor Account
The investor must log in to the investor account through www.utimf.com and then, select the option' e-SMaRT (OTM).'
2. Selecting the Folio
The investor must choose the folios wherein the investor must register the OTM, and there is no restriction on the number of folios wherein the investor may register OTM.
3. Selecting the Bank Account
Most of the time, the folio account contains only one bank account. However, the possibility of multiple bank accounts registered in the folio may not be eliminated since the investor is given an option to register up to 5 bank accounts. As such, if the investor has registered multiple bank accounts, the next step is to select the bank account with which the investor desires to register the OTM.
Once the bank has been selected, the portal will redirect the investor to the net banking login page of the bank. However, it must be noted that not all the banks are registered with NPCI for NACH mandate. As such, the investor must select one of the designated banks to proceed with the NACH mandate registration process.
4. Authorising the OTM using Net Banking
he final step in the registration process is to authorize the OTM using the net banking portal. The investor logs into the net banking account and authorizes a debit of a nominal amount, say Re. 1, from the bank account after providing the necessary transaction password/ One Time Password (OTP).
In line with the Digital India Campaign, NACH Mandate enables a convenient and paperless process to make investments in mutual funds seamless. So, once the investor has set an OTM, the future payments up to a specified limit may be made just with a click of a button.
Click here for solution
[Std 05] August Month Unit test Question Paper & Solution 2020
Important: Please always Check and Confirm the above details with the official website and Advertisement / Notification.
Tag :
UNIT TEST SOLUTION
0 C "[Std 05] August Month Unit test Question Paper & Solution 2020"