Skip to content

NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Investor Services

A mutual fund investor wants to change the bank account registered in the folio for redemption proceeds. Which is the usual correct approach?

The investor should submit a signed written request with proof of the new account, such as a cancelled cheque or bank statement, following the AMC process. This verification prevents fraud. Verbal or unverified requests are not accepted, and bank details can be changed.

  1. APhone the distributor and ask for verbal change
  2. BSubmit a signed request with the new bank details and supporting proof such as a cancelled cheque or bank statement, as per the AMC's processCorrect
  3. CThe bank account of a folio can never be changed
  4. DSend an email without any identity verification

Explanation

AMCs require a written, signed request with proof of the new bank account such as a cancelled cheque or bank statement for safety. Verbal or unverified requests risk fraud, and bank changes are permitted.

Did you get it right without looking?

One question tells you little. A timed set on Investor Services shows your real accuracy, how long you take and where you lose marks.

Practise Investor ServicesFree diagnostic mock

More Investor Services questions