Financial Daily from THE HINDU group of publications
Friday, Apr 14, 2006
Financial Daily from THE HINDU group of publications Friday, Apr 14, 2006 |
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Money & Banking
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Co-operatives Marketing - Channels and Franchises Markets - Mutual Funds Our Bureau
Mumbai , April 13 Urban co-operative banks, which have signed a memorandum of understanding and are registered under the Multi-State Co-Operative Societies Act, can now sell mutual fund products. The Reserve Bank of India on Thursday announced that UCBs can distribute mutual fund products. The banks can purchase or sell mutual funds on behalf of their customers. UCBs had requested the RBI that they should be allowed to offer this service to their customers.
Guidelines
The bank should not buy back MF units from customers or acquire such units from the secondary market, the RBI said. The investment of the customers and the bank's own investment should be kept distinct from each other. In order to ensure better control, retailing of MFs may be allowed only in certain selected branches of the bank. The bank should comply with the Know Your Customer and Anti Money Laundering guidelines in respect of the applicants, the RBI said.
More Stories on : Co-operatives | Channels and Franchises | Mutual Funds
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