The mutual fund industry is working overtime to minimize the impact of banks merger.
Investors having bank account in eight banks -Dena Bank, Vijaya Bank, Corporation Bank, Andhra Bank, Syndicate Bank, Oriental Bank of Commerce, United Bank of India and Allahabad Bank will see changes due to mergers.
However, barring Dena Bank and Vijaya Bank, there will be no change in bank account, only IFSC code will be updated. RTAs have been updating IFSC code on their own in both bank account of investors and distributors.
Investors having bank accounts with Dena Bank and Vijaya Bank will have to update their bank account by submitting a change of bank mandate form along with cancelled cheque of old bank account or passbook and cancelled cheque of new bank at folio level to redeem their investments.
However, things will get simpler as the industry has been closely working with payment aggregators and banks to ensure that there is no disruption in the process. Also, transactions like SIPs and lumpsum will not get affected.
CAMS is coordinating with fund houses and investors to find ways to unilaterally update IFSC codes. "Emails and electronic links are being sent to investors where they can send us the new account number. We need a positive affirmation and input from the investors to proceed," said CAMS CEO Anuj Kumar to cafemutual, in an interview.
So investors are suggested to keep a track of the E mail from CAMSONLINE.com , and update their IFSC code , if they have migrated from Dena Bak or Vijaya Bank
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