Aditya Birla Sun Life Mutual Fund

What-you-should-know-about-changing-the-bank-mandate

What You Should Know About Changing The Bank Mandate?

Nov 28, 2018
4 mins | Views 13750

It is mandatory for investors to provide their bank account details while investing in mutual funds. You can provide details of one bank account at the time of investment and can subsequently register up to five bank accounts against a single folio.

While registering multiple bank accounts, you have to specify one of the bank accounts as the ‘primary’ or “default” bank account into which the redemption / dividend payments would be credited. You may also specify any of the bank accounts for receiving the credit of redemption proceeds while making a redemption request. If no account is specified in the redemption request, the redemption proceeds shall be credited /remitted to the default bank account.

There could be several reasons for having to change your bank account details for your investments. Here we list down the process to change the bank account details for your mutual fund investment:

  • For registering change in bank account details, you would need to submit the prescribed bank mandate form to the mutual fund / its Registrar along with other required documents of the new bank account.

    In case only a single bank account is required to be updated, use the stand-alone Change of Bank Mandate form. For changing more than one bank account, use the “Multiple Bank Account Registration Form”
  • In case of a stand-alone bank change request, along with the prescribed bank mandate form, investors need to submit the original or a self-attested photocopy with the original (for verification & return across the counter) or a copy duly attested by the Bank, of any one of the following documents:
    • Cancelled original cheque of the new bank mandate carrying the first unit holder’s name and bank account number printed on the face of the cheque; OR
    • Self-attested copy of latest bank statement or bank passbook with current entries not older than 3 months; OR
    • Bank’s Letter certifying the bank account details, duly signed by branch manager/authorized personnel of the bank.

Few mutual fund houses may require following additional documents of bank mandates already registered to ascertain the authenticity of the request, with a view to safeguard your interest and prevent any unauthorized/fraudulent transactions:

  • A cancelled original cheque leaf of the old (currently registered) bank account (with first unit holder name and bank account number printed on the face of the cheque) OR
  • A copy of the bank passbook/statement containing the account number and the name & address of the account holder duly certified by the branch manager/authorized personnel of the bank with his/her full signature, name, employee code, bank seal and contact number.
  • In case the bank account is already closed, a duly signed and stamped original letter from the concerned bank on the official letterhead, confirming the closure of the said account may be submitted in lieu of the cancelled cheque.

To further prevent fraudulent/unauthorized transactions, whenever any change of bank mandate request is received/processed simultaneously with or just prior to submission of a redemption request, mutual fund houses/RTAs would maintain ia cooling-off period of 10 working days from the date of redemption. In other words, there could be a gap of 10 working days between the time bank mandates are changed and redemption requests are processed.

To avoid this cooling period, you can register multiple bank accounts at the time of investment itself. That way, a change of bank mandate - if and when required - would not be necessary. At the time of redemption, if you want money to come into another already registered bank account (& not the default account), you just simply need to specify that in your redemption slip.

At Aditya Birla Sun Life Mutual Fund, we have now made updating Bank details easy for folios where mode of holding is “Single”. Give a call on our Toll Free Number or send an email request or a visit to our nearest ABSLAMC Branch to complete all your banking formalities. Our Contact Centre Team/Branch CRE will ask for your New Bank Name, Account Number & IFSC Code and instantly validate the request through IMPS.

To download our editable version of Application Form for Change in Bank Account and Contact Details, please click here or call our Toll Free Number for further assistance.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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