Important: Update your bank account details for Mutual Fund redemptions

19 June 2024
2 min read
Important: Update your bank account details for Mutual Fund redemptions
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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As a result, investors will not get the option to select the bank account for transferring withdrawn amounts.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 

Procedure to Change Linked Bank Account

If you wish to change your linked bank account, please follow these steps:

-You can visit MF Central to create an account and update your bank details. Please note that this method is applicable only if your total investment in the mutual fund is less than Rs 10 lakh.

-If your investment value is more than Rs 10 lakh, follow the steps outlined here: Update Bank Details.

For further assistance, please contact us on [email protected]. We are available 24/7 to support you.  

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. Groww Invest Tech Pvt. Ltd. (Formerly known as Nextbillion Technology Pvt. Ltd) Ltd. do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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