Non-financial transactions in mutual fund folios
Every change that moves no money but changes the record: what the investor submits and what the RTA checks.
A non-financial transaction changes the record without moving money or units: a new bank account, a new address, a corrected name, a power of attorney. It has no NAV and no tax effect, but it decides where the next payout goes and who can give instructions, so the RTA checks it as carefully as a redemption.
Each request is tied to the folio, the number the RTA uses to recognise an investor at one fund house. Some changes (address through the KRA) update every folio across funds by PAN. Others (bank account, PAN itself) are made fund by fund.
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The common requests at a glance
Turnaround times from Table 15.1 of the workbook; the full table is on the turnaround times page.
Change of bank details
Key document or rule
Bank mandate form plus proof of the new account; 10-day cooling period if it comes with a redemption
RTA turnaround
15 days
Change of address (KYC folio)
Key document or rule
Update at the KRA first; the KRA passes it to RTAs
RTA turnaround
15 days
Change of email or mobile
Key document or rule
Signed by all joint holders; family declaration if it belongs to a relative
RTA turnaround
15 days
PAN update
Key document or rule
Self-attested PAN of all holders; name must match Income Tax records
RTA turnaround
15 days
Change of name
Key document or rule
Supporting documents and both old and new signatures
RTA turnaround
21 days
Minor turning major
Key document or rule
New PAN, KYC, bank update, then the AMC
RTA turnaround
Not listed separately
Power of attorney
Key document or rule
Notarised PoA signed by the PoA holder
RTA turnaround
Not listed separately
Pledge or lien
Key document or rule
Letter from the unit holder naming folio, scheme and units
RTA turnaround
Not listed separately
| Request | Key document or rule | RTA turnaround |
|---|---|---|
| Change of bank details | Bank mandate form plus proof of the new account; 10-day cooling period if it comes with a redemption | 15 days |
| Change of address (KYC folio) | Update at the KRA first; the KRA passes it to RTAs | 15 days |
| Change of email or mobile | Signed by all joint holders; family declaration if it belongs to a relative | 15 days |
| PAN update | Self-attested PAN of all holders; name must match Income Tax records | 15 days |
| Change of name | Supporting documents and both old and new signatures | 21 days |
| Minor turning major | New PAN, KYC, bank update, then the AMC | Not listed separately |
| Power of attorney | Notarised PoA signed by the PoA holder | Not listed separately |
| Pledge or lien | Letter from the unit holder naming folio, scheme and units | Not listed separately |
Change of bank mandate
- 1
How many accounts
An individual can register up to 5 bank accounts with a mutual fund, a non-individual up to 10, and name one as the default for redemption payouts. Accounts can be added and deleted.
- 2
What to submit
The prescribed change of bank form with full details (bank, branch, MICR and IFSC where applicable, account number and type), plus one of: a cancelled blank cheque leaf, a self-attested bank statement or passbook not older than 3 months, or a bank's letter certifying the account. The AMC may also ask for a cancelled cheque or statement of the old account.
- 3
How the RTA verifies
The usual practice is a ₹1 test credit to confirm the account. Payment checks after that follow the third-party and verified-account rules.
- 4
The cooling period
If the change of bank arrives with, or just before, a redemption request, the fund or RTA holds the payout for a 10-day cooling period. It guards against someone redirecting an investor's money.
Other personal details
- Address
- For a KYC-compliant folio, the fund will not register an address change itself. The investor updates the KRA with a KYC update form, PAN and proof of the new address; the KRA informs the RTAs, which update every folio of that PAN across funds. A non-KYC folio changes it at an AMC office or ISC with self-attested address proof and PAN.
- Email and mobile
- Each email and mobile number can sit in the folios of only one PAN, unless a family declaration is given for a relative's details. The request is signed by all joint holders. Changing both together needs a 10-day gap between the two changes.
- PAN
- Needed in the folio before the investor can redeem. Updated online or at an office or ISC with self-attested PAN copies of all holders; the RTA checks the signature and that the name matches the Income Tax database. It must be done separately with each mutual fund.
- Name
- For marriage, divorce or a change of first or middle name. A letter with PAN and KYC in the new name and the relevant proof (notarised marriage certificate, court order, gazette notification). The holder signs with both old and new signatures, and the bank account must already show the new name.
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Minor turning major: the order matters
- 1
1. New PAN
The new major gets a PAN in their own right.
- 2
2. KYC
Completes KYC with a KRA through an intermediary.
- 3
3. Bank
Updates the bank account, and gives the fund a cancelled original cheque leaf of the new account.
- 4
4. Inform the AMC
Only after steps 1 to 3. Until the status is changed to major, no further transactions are allowed, and any SIP, STP or SWP is suspended.
Power of attorney, pledge and option changes
- check_circlePower of attorney, new folio: the PoA holder's name, PAN and KYC on the application, with a notarised copy of the PoA. Existing folio: a separate letter with the same details. A PoA without the PoA holder's signature is rejected. The investor keeps full control and can still transact; cancellation is by letter. Both appear on the statement as non-financial transactions. A PoA holder cannot create or change the nomination. Non-resident Indians are the most common users.
- check_circlePledge and lien: the unit holder writes to the AMC or RTA naming the folio, scheme and units. The RTA marks a lien for the lender and has no role in the loan terms. The units cannot be redeemed without the lender's NOC, only the lender can remove the lien, and on default the lender invokes it and has the units transmitted. The lender's rights come before a joint holder's or nominee's.
- check_circleChange of option: moving between IDCW pay-out and IDCW reinvestment in the same scheme is non-financial, because both options have the same NAV. Moving between growth and IDCW is a switch at different NAVs, so it is a financial transaction.
- check_circleChange of corporate name or status: a certificate from the Registrar of Companies, the authorisation to invest, a board approval and the list of authorised signatories. A change of signatories needs a certified board resolution and a letter signed by an existing signatory.
Two 10-day rules, easily confused
The 10-day cooling period for a bank change applies when it arrives with or just before a redemption. The 10-day gap for contact details applies when both email and mobile are changed. Neither is the 15-day turnaround time for processing the change itself.
Non-financial transaction questions
What is a non-financial transaction in mutual funds?expand_more
A change to the folio's details that moves no money or units and has no NAV effect: bank account, address, contact details, name, PAN, power of attorney, nominee, lien, or a switch between IDCW options.
How long does a change of bank mandate take?expand_more
The RTA turnaround is 15 days. If you also submit a redemption, the payout can be held for a 10-day cooling period after the change.
How many bank accounts can I register in a mutual fund folio?expand_more
Up to 5 for an individual and up to 10 for a non-individual investor, with one marked as the default for payouts.
Why can't the fund change my address directly?expand_more
For a KYC-compliant folio the address belongs to your KYC record. Update it at the KRA and it flows to all your folios across funds by PAN.
Can a power of attorney holder change my nominee?expand_more
No. A PoA holder can transact on the investor's behalf but cannot create or change the nomination.
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