Why did I receive my mutual fund redemption as cheque instead of direct credit to my bank account?

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You might wonder why you have received your mutual fund redemption as cheque, instead of direct credit to your bank account. Following are the most common reasons why AMCs process the redemption amount via cheque instead of a direct credit :

 

1. Change in the existing Bank account:

• Mismatch in IFSC code
• TAX status mismatch ( Resident to NRO or vice versa)
• Name Mismatch as per Bank

       2. NEFT/RTGS process failed due to IMPS validation  (account closed/Frozen/Invalid/ Inactive Bank account)

    

In these scenarios, AMCs process the redemption amount via cheque to your registered address.