Most of us invest in mutual funds for long-term say for 5-10 years. During this period, some of the unit-holders may forget what were their registered savings bank account details in their mutual fund investments.
What happens in case you have closed your savings bank account, which was also a registered bank account for your mutual fund investments. Now you would be unable to redeem your mutual funds as the AMC (asset management company) would transfer funds in your bank account mentioned in their records. However, the bank account is closed now and no longer operative. The electronic fund transfer made by the AMC to your bank account would be declined as the account is closed. Also, you won't be able to deposit the cheque sent to you by the AMC as the cheque would mention your bank account number, which is closed.
The below article provides a comprehensive analysis of what you need to do in case you want to change your bank mandate for your mutual fund investments.
Unitholders need to submit a written request for change in their bank account details. The written letter should be duly signed by the unit holders. Besides, unitholders also need to submit anyone of the following documents to their nearest CAMS (Computer Age Management Services) or mutual fund branch for change of bank mandate.
- Original and cancelled cheque leaf of new bank account wherein the first unit holder's name is printed on the face of the cheque.
- Self attested photocopies of the bank account statement issued by the respective bank (statement not older than three months) attested either by AMC or by bankers.
- Copy of the Bank Passbook with current entries (not older than three months) attested by AMC or by bankers.
- Letter from the respective bank (on their letterhead) duly signed by Branch Manager/Authorized Personnel, stating the investor's bank account number, name, account type, bank branch, MICR, IFSC code of the bank branch.
In case the photocopies of the document are being submitted kindly ensure that the same is attested by the bank manager of the respective bank.
Alternately, the attestation can be obtained from the branch office of the Asset Management Company Ltd. or at any of the designated Official Point of Acceptance of Transactions (OPAT) by producing the original documents for verification.
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