PSB mergers may hit mutual fund transactions

Industry players say redemption, incremental buying or SIP transactions of investors of PSBs could be hit if account details are not updated by clients over the next few days

Buying and redemption of units in the Rs 31-trillion mutual fund (MF) industry could be hit due to the mergers between public sector banks (PSBs). The bank account details and/or the Indian financial system code (IFSC) for some PSBs customers has changed or is in the process of changing due to the mergers. This has created a problem for registrar and transfer agents (RTA)—MF intermediaries responsible for record-keeping and enabling transactions such as buying and redeeming.

Industry players say redemption, incremental buying or systematic investment plan (SIP) transactions of investors of PSBs could be hit if account details are not