NPCI said it recently migrated systems to scale its National Automated Clearing House (NACH) infrastructure, during which it faced some initial teething issues such as delay in settlement
The National Payments Corporation of India (NPCI) on February 10 admitted to “teething issues” with a newly implemented system after reports emerged of investors missing out on the post-Budget market rally due to technical glitches.
NPCI said it recently migrated systems to scale its National Automated Clearing House (NACH) infrastructure to meet increasing volume requirements and industry demands.
“This was a planned migration activity 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 net asset value (NAV) should be realised only after the funds received by the Mutual Funds (MFs),” the NPCI said in a statement.
It added that most of the early issues were addressed and efforts are on to sort out the unresolved pendency.
Reports had earlier emerged that investors were unable to get the MF units they purchased in time because of the troubles with the settlement system operated by the NPCI.
It can be noted that the Budget announcement on February 1 and following trading sessions saw nearly 10 percent rally in benchmark indices, 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 Securities and Exchange Board of India (SEBI) only aggravated the troubles, the reports said.
The NPCI statement on February 9 said most early issues observed in this regard are already solved and it is working with bank and fintech partners to “sort out any unresolved pendency”.
“NACH has started an exclusive clearing session for MFs 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.
It added: “We regret this unwarranted inconvenience caused to the investors and would work towards providing the best of payment experience.”
(With inputs from PTI)
