Mutual Funds

How to change bank accounts linked to mutual funds

Vivek Ananth | Updated on July 26, 2020 Published on July 26, 2020

You can also link multiple bank accounts to your MF portfolios

Whether it’s changing bank accounts linked to a particular mutual fund folio, adding multiple bank accounts to a folio or changing the bank account through which you want to make investments, you have to fill in physical forms.

If you want to change the bank account details registered with your mutual fund portfolio, you will have to fill and submit a form to the fund house, with the details of the new bank account.

Some mutual funds such as HDFC AMC and ICICI Prudential AMC include the bank-account-change request in a consolidated form that contains other non-transactional request sections as well.

Some like Axis AMC has a separate form to change bank account details, which includes changing the bank mandate details for authorising the mutual fund to debit your account for the investments.

To change your bank account details, you will have to produce an original cancelled cheque, or an extract of your passbook, or a self-attested bank account statement.

Usually, an original cancelled cheque serves the purpose.

This is to match details such as IFSC code, MICR code and bank account details, with the details you have filled in the form.

Addition of accounts

An investor can add multiple bank accounts to a mutual fund folio.

This is helpful in case you want to make investments through whichever account that has money.

For this, you will have to specifically link each account to the folio.

All mutual fund houses have a multiple-bank-account registration form.

You can fill the form either when you start an investment portfolio with a mutual fund or after you startinvesting.

You will have to fill details such as account number, IFSC code, MICR code, along with your personal details while adding additional bank account(s) to your folio.

In the same form, you will have to specify your default bank account for the systematic investment plans (SIPs). The payouts in case of redemption will also be linked to this bank account.

The other bank accounts can be used for making lump-sum investments directly through the mutual fund’s website or mobile application.

Through RTAs

Investors can also update their bank account details by submitting a form to a Registrar and Transfer Agent (RTA). There is also the option of visiting the RTA’s website and directly setting up a bank mandate for all your folios with the mutual funds that the RTA serves.

RTAs such as CAMS and KFintech allow investors to directly update their bank account details and change their mandate details on their website.

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Published on July 26, 2020
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