How to register multiple bank accounts when investing in mutual funds

Investors are able to purchase and redeemn mutual fund investments only through bank accounts registered in the MF’s records. To provide more flexibility of transaction, mutual funds allow registration of multiple bank accounts in their records. By doing this, the investor can specifically mention in the redemption request the fund house to credit the proceeds to one of the registered bank accounts. Up to four bank accounts can be registered using this facility.

Form

Multiple bank accounts registration form can be obtained from the MF or registrar’s office or can be downloaded. Each folio will need a separate form. Part A of the form is for registration of accounts. Details like account number, IFSC code, bank name, branch, MICR code is needed.

Default bank account

Part B of the form can be used to set up a default bank account from amongst the accounts registered with the fund under Part A. Unless mentioned by the investor, all payments (dividends/redemption) will be credited to this account.

Bank account deletion

An investor can also delete an already registered bank account by filling up Part C of this form. The bank account number and bank name needs to be mentioned for the accounts that are desired to be deleted from records.

Documents

A cancelled cheque with the unit holder’s name and account number must be submitted for registration of an account. Or, a copy of the passbook or statement of account may be submitted. The copy should be certified by the bank manager.

Process

On submission of the form, the details mentioned in the form are verified with the supporting attached and if found in order, the request is processed within 5-10 working days.

Points to note

> Deletion of an existing default bank account is not permitted unless the investor mentions another registered bank account as a default account.

> Form should be signed by all holders if the mode of holding is joint.

The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.