How To Apply Online For a MF Utility Account

In this guest post, Anish Mohan presents a step-by-step guide to applying online for an MF Utility account. MF Utility is the transaction aggregation portal run jointly by a consortium of 26 mutual fund houses. It offers investors way to invest in direct mutual fund plans (and switch from regular) via a single portal. It has now been in operation for just over a year now and has continuously evolved for the better, thanks to fantastic management/support team led by MD and CEO, Ve Ramesh.

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Dear Readers,

I am back with another topic on MFU. Regular readers of freefincal and Facebook group Asan Ideas for Wealth would by this time know, I had written a post back in Feb 2016 which was a lite user manual on how to transact online in MF Utility. At the end of 2016, in last week of December I wrote another post to update the new changes on the transaction handling pages of MFUOnline: MF Utility Portal User Guide: Updated Second Edition

Today I write to discuss on a new aspect of MFU. This is known as electronic Common Account Number, abbreviated as eCAN.

mf-utility-e-can

This process allows an individual to open CAN in a completely online mode without any paper signatures and courier or submission at any office. Obviously, this comes with certain pre-requisites as below:

  1. eCAN can be created by fresh investors who do not have any investments in the industry (at least in MFU participating AMCs)
  2. For existing investors who are creating eCAN, they should compulsorily register only those bank accounts which are registered in the existing folios that get mapped to the CAN. Bank Accounts which are not registered in the mapped folios will be ignored.
  3. In both instances, they should be KRA KYC Compliant.
  4. eCAN is of two types i.e. Completely Electronic & Partially Electronic. If investors do not satisfy 1-3 points above, the eCAN mode will be changed to Partially Electronic and they will be provided with a prefilled form to be submitted physically.
  5. For details on eCAN qualification criteria – Please refer to the eCAN FAQs in MFU Website.

Now, please see below the list of steps that are required to open an eCAN.

The process starts below

1: On the MFU website, click on eCAN and the following screen appears. Input your email ID in the following text box.

ecan-12: On the click of “New Form” button, the following screen appears. Make your choice of the CAN (read the pre-requisite section to assess if you are eligible for Completely Electronic CAN). The rest of the fields are self-explanatory.

ecan-2

3: On the click of “Next” button, the following screen appears. These fields are related to your personal details as PAN and AADHAAR and contact numbers and FATCA declaration. On FATCA, the electronic fill up is more than enough and no need to fill any paper forms. The relevance of this statement will be clear in a later section of this post. Fill it and press the Next Button.

ecan-3

4: On the click of “Next” button, the following screen appears. These fields are related to Bank Accounts of the Primary Holder. Please note a very important thing at this point. Please add the Bank Account Number which is ALREADY recorded in your Folios. If you mention any other bank account that does not feature in your existing Folios, then the eCAN request will get rejected.

ecan-4

5: On the click of “Next” button, the following screen appears. These fields are related to Nominees of the CAN. Here you may wish NOT to provide any nomination at all. In which case, the Nomination Option should be selected as “No – I do not want to Nominate”.

ecan-5

6: The above screen is the penultimate screen after which the “provisional” CAN will be allotted and displayed as follows.

ecan-6

Post allotment of the Provisional CAN, a mail would be sent by MFU with a URL for uploading the documents. Please click on the hyperlink in the mail, wait for the OTP which will come in your mailbox and mobile, input the OTP and the following screen appears. Note: The allowable file formats are GIF, JPG or JPEG, PNG and BMP and PDF is NOT allowed. Therefore, make sure your scanned copies are in the proper formats as stipulated by MFU.

ecan-7

A common confusion on the document upload process: The automated mail from MFU advises you to upload three documents

  • Scanned Copy of PAN card
  • Scanned of Cancelled Cheque or Bank Passbook
  • FATCA declaration

The 3rd point is where most applicants get baffled as to how to get the declaration form or make the declaration. Let me answer you, loud and clear, “IGNORE THIS 3rd BULLET”. No need to do anything on the 3rd bullet and my confabulations with MFU team tells me that this is a standard email response.

The electronic CAN is one of the unique things that MFU has come up with. It simplifies the process of opening a CAN manifold and is truly something that “Digital-India” should look like. I have always vouched for electronically executed processes since I am extremely abhorrent to signature and form-fill-up. Working 24 X 7 on laptops and smartphones, one thing which I regret is to lose my handwriting skills and ever-changing signatures. Therefore, any kind of handwritten paper or signature or paper-based process irritates me to the core.

I thank you, readers, for your patience and going through this post. At the end, let me take the opportunity to wish you all a very Happy New Year 2017.

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Thank you, Anish. If you require some motivation to switch from regular to direct, have a look at: Direct Mutual Fund vs. Regular Mutual Fund: 2017 Performance Report.

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22 thoughts on “How To Apply Online For a MF Utility Account

  1. Sayan Sircar

    This part is fine. There is no information what so ever on the MFU site as to how to login online (i.e. get the login and password) once you are allotted the CAN. Post that, this blog itself has a tutorial as how to transact online on MFU.

    Reply
  2. Anish Mohan

    Hi Adil, the allotment of the CAN is instant. However the operationalization of the CAN depends on the RTA. After you upload the docs, the MFU team will get it verified from the RTAs and ask them to map your existing folios. Plus they will run a verification check if the bank account that you have entered are already present on the folios. These checks take some time and mostly it depends on the RTAs on how promptly they confirm the data.

    Reply
  3. Anish Mohan

    In the how to and mf utility guide I have written in previous posts, I have mentioned hos to obtain the username and password. It's a simple process to send an email to clientservices [at] mfuindia.com.

    Reply
  4. Ankan

    If someone has a folio with one of the participating AMC from the AMC site only, will they qualify for completely electronic CAN?

    Reply
  5. Anish Mohan

    Hi Ankan., Yes. Very much possible and it might take even quicker time to get the CAN approved and ready for transacting !

    Reply
  6. vivek

    hello,

    Can NRI's use this MFU?
    While I was in India I have MF investment in HDFC and Reliance, Do i need ECAN again ?

    Regards,
    Vivek

    Reply
  7. Anish Mohan

    Hi Vivek, NRI’s can use MFU and they can create an eCAN by selecting the Tax Status as NRI-NRE or NRI-NRO depending upon the bank account type they wish to register as NRE or NRO respectively. Their existing investments, if any, in the same CAN combination will get mapped to the CAN once created.

    Reply
  8. arshad

    Hi sayan,
    Once eCAN is issued and you receive a confirmation email, you need to send and email to their customer service email id mentioning your eCAN and asking them to send you the link to create user id/password.
    You will receive an email from them with the link. This link is valid for only 1 day, so you need to create user id/password same day.
    Once you click on the link, they will ask mode of sending OTP, once OTP is entered you can create user id/password and upon confirmation you may login to your account.
    Hope it helps.
    Arshad

    Reply
  9. Him

    Very informative post. After eCAN generation and subsequent validation how bank mandate will be generated and how it can be executed for investing in SIP mode? Will the Payeez registration take place electronically or we need to send the signed form?

    Reply
  10. Anish Mohan

    Hi Him, thanks. The payeezz mandate is to be opened in paper form only. The electronic mode of opening PayEezz is not yet rolled out.

    Reply
  11. Him

    Thanks Anish for the prompt reply. It means the copy of cancelled cheque which needs to be uploaded is only for verification of bank account. Secondly I can still invest by online fund transfer till the time Payeez mandate is enabled. Is my understanding right?

    Reply
  12. Anish Mohan

    Hi Him you are absolutely correct in both of your questions. The copy of cancelled cheque is for verification of bank account and you can carry out txns in other mode till your PayEezz is approved

    Reply
  13. Rajesh

    Or you can use Piggy app for mutual funds. I like the interface and the extra information they provide about all funds. Much simpler to use. What is your opinion?

    Their website is Piggy.co.in

    Reply
  14. Nuruzzaman

    Very well drafted and informative. Thank you for taking the pain to educate ppl. I hav applied for eCAN after going through your tutorial. But have still not got the CAN approved and ACTIVATED. It's been 3 days now. How long should I wait before contacting MFU to get an update on the status of my CAN.

    Reply
  15. Sonal Ranjan Patel

    Hi,
    Thank you for such a Informative post.

    I have two question related to eCAN.
    1) I have Direct MFs running directly through AMC website. Still, I registered/applied for eCAN by uploading Pancard and Bank account details. Now I have received a mobile message (not a mail yet) that CAN xyz has been alloted to me.
    Q> How can I create userid/password to login into MFUtility?
    Q> Will all the MFs linked to my pancard be visible?

    2) My wife does not have any MFs and I have applied eCAN for her too. But she has not yet received any confirmation message till now.
    Q> Does It take longer time for those who don't have MF account earlier?

    Reply
  16. Anish Mohan

    Hi Mr. Patel, Please see the answers to your queries. "How can I create userid/password to login into MFUtility?" -- Please send a mail from ur registered email id to clientservices@mfuindia.com requesting for online access. "Will all the MFs linked to my pancard be visible?" - Yes, indeed. "Does It take longer time for those who don't have MF account earlier?" No, it is not anything like that. However the details are shared with all RTAs whoc need to confirm MFU back with no folios found. Most of the cases, this reply takes time and MFU will have to wait for that time. The bank account numbers that you have uploaded is validated against the existing bank details on existing folios. in your case, that validation was easy and straight forward and so the confirmation came quick. In cases where there are absolutely NONE, RTAs take time to revert back. Wait for 5 days and raise a complaint with the Facebook page of MF Utility.

    Reply

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