At the time of investing in a mutual fund, it is mandatory to provide bank account details. While mutual funds provide investors the option to register multiple bank accounts, one can choose to give the details of only one account.
If there is a change in the bank account details, it is essential for the investor to register it with the mutual fund to ensure that dividends and redemption proceeds are credited to the new operational account. Investors can change the details by submitting a change of bank mandate form, along with supporting documents, at the mutual fund office or investor service centre.
Procedure: Details of the new bank account, including the type of account, branch details, magnetic ink character recognition ( MICR) code, and the Indian financial system code ( IFSC), if available, have to be provided.
Signature: The form has to be signed by all the holders of the folio according to the mode of holding.
Documents: The investor needs to submit any one of the following documents as evidence of the registration of details-cancelled original cheque leaf, letter from the bank on its letterhead certifying that the unit holder maintains an account with the bank, or a copy of the bank pass book, or a statement of bank account certified by the bank manager.
Points to note
The first holder of the folio should be one of the holders of the new account.
One should submit the request for change in bank details and ensure that it has been processed at least seven days before submitting any redemption request. If the change in bank mandate has not been processed, the payment is made to the existing bank account.
The change in bank mandate will apply to all the schemes held under a folio.
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