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

An investor in a mutual fund scheme wants to change the registered bank account for receiving redemption proceeds. Which is the most appropriate step as per standard investor service practice?

The investor should submit a signed change-of-bank-mandate request with supporting proof such as a cancelled cheque, as required by the AMC or its registrar. The documents protect against fraud. A verbal request, an automatic update, or opening a new folio is not the correct process.

  1. ASubmit a written change-of-bank-mandate request with a cancelled cheque or bank proof, as required by the AMC/RTACorrect
  2. BTelephone the distributor, who can change it without any documents
  3. CWait for the next dividend payout, which updates the bank automatically
  4. DOpen a new folio, because the bank cannot be changed in an existing folio

Explanation

A change of bank mandate is a standard service request. It needs a signed request with supporting proof such as a cancelled cheque, to protect the investor against fraud. A distributor cannot change it verbally. Bank details are not updated automatically, and a new folio is not needed.

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