Investors in mutual funds often find themselves faced with the task of updating their bank details in their folio, and understanding the procedure can be crucial. With that in mind, let’s delve into the process of how mutual fund investors can go about updating their bank details.
Updating bank details in a mutual fund folio involves a series of steps that require attention to detail. The first step is to obtain the necessary form from the mutual fund company or their designated registrar and transfer agent (RTA). This form, typically known as the “Bank Account Registration Form” or “Bank Mandate Form,” serves as the official document for updating the bank details.
Once the form is obtained, investors need to carefully complete it by providing accurate and up-to-date information. The form generally requires details such as the investor’s name, folio number, PAN (Permanent Account Number), current registered bank account details, and the desired changes in the bank details. It is crucial to ensure that all the information provided matches the existing records to avoid any discrepancies or delays in processing the request.
After completing the form, investors must attach supporting documents as required. These documents typically include a canceled cheque leaf or a copy of the updated passbook or bank statement reflecting the new bank account details. The purpose of these documents is to validate the authenticity of the new bank account and ensure a smooth transition of funds.
Once the form and supporting documents are ready, they need to be submitted to the relevant entity. This could be the mutual fund company’s office or their designated RTA, depending on their specific instructions. It is essential to double-check the submission process and ensure that all required documents are included to prevent any unnecessary back-and-forth communication.
Upon receiving the updated bank details, the mutual fund company or RTA will verify the information provided. This verification process helps safeguard against fraudulent activities and ensures that the investor’s funds are transferred securely to the correct bank account. Once the verification is complete, the updated bank details will be linked to the investor’s folio.
It is worth noting that the time required for the entire process may vary depending on the mutual fund company and their operational efficiency. Generally, it takes around two to four weeks for the bank details to be updated in the folio. However, it is advisable to stay connected with the mutual fund company or RTA for any updates or follow-ups during this period.
In conclusion, updating bank details in a mutual fund folio demands careful attention and adherence to the prescribed procedure. By obtaining the necessary form, providing accurate information, attaching supporting documents, and following the submission process diligently, investors can ensure a seamless update of their bank details. Maintaining regular communication with the mutual fund company or RTA further facilitates a smooth transition and provides peace of mind to the investors.
