After reports of investors missing out on market rally because of technical glitches, the National Payments Corporation of India on Wednesday admitted to “teething issues” with a newly implemented system.
The NPCI said it has recently migrated systems with an objective to scale the National Automated Clearing House (NACH) infrastructure to meet the increasing volume requirements and industry demands.
“This was a planned migration activity and during which we faced some initial teething issues such as delay in settlement. Unfortunately, our migration coincided with the regulatory rule effected from February 1, 2021, that NAV (net asset value) should be realised only after the funds received by the mutual funds,” the NPCI says in a statement.
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Most of the early issues have been addressed and efforts are on to sort unresolved pendency, it says.
According to reports, the investors could not get the mutual fund units they purchased in time because of troubles with the settlement system operated by the NPCI.
It can be noted that the budget announcement on February 1 and the following trading sessions have seen a nearly 10 per cent rally in the benchmark, and a delay in crediting the units purchased meant investors who bought the units online missed out on the gains.
A recently announced regulatory change on NAV implemented by markets regulator Sebi only aggravated the troubles, the reports says.
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The NPCI statement on Tuesday claims that most of the early issues observed in this regard have been resolved and it is working with banks and fintech partners to “sort out any unresolved pendency”.
NACH has started an exclusive clearing session for mutual funds since February 1, which will support the regulatory objective to pass on funds on the same day and help banks and the ecosystem for better compliance, the NPCI said.
“We regret this unwarranted inconvenience caused to the investors and would work towards providing the best of payment experience,” it says.
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