One of the key steps to start investing in mutual funds (MFs) is to link a valid bank account to your MF account. This allows for easy transactions, such as buying or redeeming mutual funds, and for receiving dividend credits.
The market regulator SEBI allows investors to link up to five bank accounts to a single MF folio. If you change your bank account details, it is crucial to update them with the fund house to ensure that redemption proceeds and dividends are credited to your new account.
Why Bank Account Details Might Change:
There are various reasons why you might need to change your bank account details. When this happens, it's important to update your MF folio with the new information.
How to Update Bank Account Details:
Additional Methods:
You can also update your bank details through Registrar and Transfer Agents (RTAs) like CAMS and KFintech, or platforms like MFCentral and MFUtility.
Cooling-Off Period:
Upon receiving a change of bank mandate request, a 10-day cooling-off period is implemented to prevent fraudulent or unauthorized transactions. Redemption proceeds will only be paid after this period.
Required Documentation:
For each bank account to be added, you must provide:
Updating your bank account details ensures that all your transactions and dividend payments are processed smoothly and securely.
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