Important: Update your bank account details for Mutual Fund redemptions

In order to safeguard investor interests and ensure adherence to industry best practices, SEBI has directed Asset Management Companies (AMCs) to  transfer non-demat mutual funds redemption amount/SWP only to the bank account linked to an investor’s folio. 

As a result, investors will not get the option to select the bank account for transferring withdrawn amounts. The funds will be transferred only to the bank account associated with their folios.

Impact on Investors

The impact will be limited to those investors whose folio-linked bank accounts no longer exist. 

For example, if an investor started their mutual fund folio with a specific bank account and subsequently deactivated that account, they may encounter difficulties when redeeming their mutual fund investments. 

For all mutual fund investors, the redemption amount will now be transferred to the bank account linked to their folios, eliminating the option to choose an alternative bank account for receiving the redemption amount.

To know the bank account linked to your folio:

1.  Kindly visit the website of the Asset Management Company (AMC) in which you have invested. 
2. Or whenever you're redeeming, Groww will display your available bank accounts registered or linked to your folio