Irritating, customer unfriendly procedures at Mutual Funds

Irritating and unreasonable procedures at Mutual Funds.

It is a known fact that minors may not have bank accounts and when investments are made on behalf of minors, it is common to give the bank account details of the guardian and issue the cheque from the guardian's account.

However, when the minor turns a major, the folio is locked for transacting till some formalities are completed in the folio which include registration of the PAN, KYC and bank account of the minor.

Now, a few years ago, if an investor (not minor) had to change bank account in the folio, mutual funds wanted proof of the old bank account ( account to be deleted from the folio - old bank account cheque leaf) as well proof of the new bank account. This was to protect investors from fraudulent changes.

However, this is really unreasonable in the case of minors who have turned major since this is not technically a new bank account.  It is the introduction of the minor's account in the folio.

Do see the tweets below - irritation faced by an investor and the delay in getting redemption proceeds.