You can now invest in mutual fund (MF) schemes of SBI MF through your State Bank of India’s (SBI) ATM-cum-debit card using the MF’s Internet transaction facility. This is a first in the industry.
Until now, you could invest in SBI MF schemes through the fund’s website if you had a bank account with one of the 12 banks that they had tied up with. You needed to have an Internet banking facility with any of the 12 banks. Once you opened an online MF transaction account on SBI MF’s website, you could select a fund and you were automatically directed to your bank’s website where you could authorize the transfer of funds.
Now, if you already have a bank account with SBI and an ATM-cum-debit card of your account, you can buy SBI MF schemes directly through it. Once you select your scheme, you will be asked to validate your debit card, its permanent identification number and your bank account number. You need to do this each time you invest using your debit card. Once the transaction is processed, you get an intimation of your investment on the screen and an account statement in a couple of days. You could buy equity and debt schemes. In a single day, you can buy units worth only up to Rs50,000 on your regular card and up to Rs1 lakh on your gold card. “There are about 50 million ATM-cum-debit card holders across the country,” says Achal Kumar Gupta, managing director, SBI Funds Management Pvt. Ltd.