How To Change Your Mutual Fund’s Default Bank Account

Managing your investments is not just about earning returns; it is also about keeping every linked detail accurate and up to date. One of the most important details is your registered bank account, as it plays a key role in transactions like redemptions, dividend payouts, and seamless fund management. If your bank information is outdated, it can lead to delays, failed transactions, and avoidable inconvenience.

The good news is that updating your default bank account for mutual funds is a straightforward process when you know the right steps. In this guide, you will learn how to change your mutual fund’s default bank account through simple, secure, and reliable methods, so your investments continue to work smoothly for you.

What Is a Default Bank Account in Mutual Funds?

A default bank account is the primary bank account linked to your mutual fund folio where all redemption payouts, dividends, and withdrawals are credited.

Whenever you redeem your mutual fund units, the money is automatically sent to this registered default bank account. Keeping this account updated is important to ensure smooth and timely transactions.

Why You May Need to Change Your Default Bank Account

• Your old bank account is closed
• You want to switch to a new primary account
• You want better control over cash flow
• You want to avoid transaction delays

How to Change Default Bank Account via Paytm Money

You can easily update your mutual fund bank account through Paytm Money once the bank is updated at the AMC level.

Step-by-Step Navigation Path

• Log in to your Paytm Money account
• Go to “Profile”
• Navigate to “My Account”
• Click on “Bank Accounts”
• Then select “Mutual Funds Bank Accounts” to view all linked bank details
• Choose “Accounts linked to folio” to see banks mapped to your mutual fund folios
• Click on “Change Bank” to update your bank account, then “select Bank”
• Select an existing bank account from the list or click on “Add Bank Account” to register a new one
• Ensure you select the correct bank account and then click on “Proceed”
• Upload the cancelled cheque of your current bank account, followed by the cancelled cheque of the new bank account (supported formats: JPG, JPEG, PNG; maximum file size: 100 KB each)
• Once both cancelled cheques are uploaded, click on the “Proceed” tab to move to the signature screen
• You can now either sign directly on the screen or upload your signature from your device files
• After clicking on “Confirm”, you will be redirected to the OTP verification page; enter the OTP sent to your registered mobile number and click on “Submit”
• You will receive a confirmation pop-up stating “Your change bank request submitted successfully”

Once submitted, the request is processed within 4-5 working days.

Note: The new bank will be linked across all your folios.

Important Condition Based on Investment Value (AUM)

If Your Investment Value Is Less Than ₹10 Lakh

• You can update your bank account online via Paytm Money
• Digital verification (OTP + document upload) is sufficient

If Your Investment Value Is More Than ₹10 Lakh

The process becomes offline due to regulatory and security reasons.

You will need to:

• Visit the nearest RTA service centre (CAMS or KFintech) or AMC branch
• Fill out a physical bank change request form
• Submit:
  • Cancelled cheque of old and new bank accounts
  • Identity proof
• Complete in-person verification

This ensures higher security for large investment portfolios.

Prerequisites

• Investment value should be less than ₹10 lakh for online processing
• Cancelled cheque copies of old and new bank accounts

Alternative Offline Method

You can also visit:

• CAMS service centres
• KFintech branches
• AMC offices

This method works irrespective of investment value.

How to Download Cancelled Cheque from Paytm Payments Bank

• Open the Paytm app and log in to your Paytm Payments Bank account.
• Go to the “Bank Account” section under Banking & Payments.
• Scroll down and tap on “All Services”.
• Under the “Download” section, select “Cancelled Cheque”.
• Tap “Download Now” to get your cancelled cheque copy instantly.

How to Add a New Bank Account on Paytm Money

• Click on “Add New Bank Account”
• Enter IFSC or search bank branch
• Enter account number and type
• Complete verification

If Verification Fails:

Upload:

• Cancelled cheque
• Bank statement
• Passbook copy

Once verified, the bank is added and sent for backend approval.

Key Takeaways

• Always keep your default bank account updated
• Online process works for investments below ₹10 lakh
• Higher investments require offline verification
• Paytm Money provides a simple and quick interface

RTA Service Centre Links

• KFintech

• CAMS

Registered Mutual Funds Under RTAs (KFintech vs CAMS)

Conclusion

Changing your default bank account in mutual funds is a simple but important task. It ensures that your redemption payouts are credited without delays and helps you stay in control of your finances.

With platforms like Paytm Money the process has become much more convenient. However, for larger investments, offline verification adds an extra layer of security.

Make sure your bank details are always up to date to avoid any disruptions in your investment journey.

Disclaimer: Investment in the securities market is subject to market risks. Read all the related documents carefully before investing. This content is purely for information purpose only and in no way is to be considered as an advice or recommendation. The securities are quoted as an example and not as a recommendation. Investors are requested to do their own due diligence before investing.

SEBI Reg No.: Broking – INZ000240532, Research Analyst – INH000020086, Depository Participant – IN-DP-416-2019, Depository Participant Number: CDSL – 12088800, NSE (90165), BSE (6707), MCX (57525), NCDEX (1315), MSEI (85300).

Registered Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi – 110019.

For complete Terms & Conditions and Disclaimers, visit https://www.paytmmoney.com.

For assistance, contact: feedback@paytmmoney.com 

FAQs