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

For a mutual fund unitholder who has not opted for demat and wants to change the bank account registered for redemption payouts, which approach is correct?

The unitholder must submit a written change-of-bank-mandate request along with proof of the new account, such as a cancelled cheque or bank statement. This documentation protects against fraudulent redirection of redemption proceeds; verbal requests or a KYC form alone do not change the mandate.

  1. ASubmit a written change-of-bank-mandate request with proof of the new bank account such as a cancelled cheque or bank statementCorrect
  2. BTelephone the distributor, who can change it without any documents
  3. CThe bank details can never be changed after the first investment
  4. DSubmit a fresh KYC form, as that automatically changes the bank mandate

Explanation

Change of bank mandate is a service request to the AMC/RTA, supported by proof of the new account such as a cancelled cheque, to protect against fraud. A KYC form does not change the mandate, and a verbal request without documents is not accepted.

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