Minor becoming a Major – Mutual Fund Redemption Rejection

POSTED BY Zaib ON February 20, 2013 8:49 pm COMMENTS (10)

Hi guys,

I submitted a request with UTI for redemtion of Mutual Fund units which were purchased in my name by my father when I was a minor.

I got a reply from them that the request has been rejected because I have become a Major and some kind of Banker’s Attestation is required.

Quoting from the FAQs listed on UTI’s website:

Upon a minor attaining the age of majority (i.e. on completing 18 years of age), he/she must be KYC Compliant and have KYC Acknowledgement of their own. The same should be informed to the Mutual Fund where he/she holds an investment, along with other details such as the Bank Details, Signature, etc. as per the present requirements of such Mutual Fund.

Now I have done all of the above. Updated my Bank Details with UTI, become a KYC compliant (KRA), etc., so why has this request been rejected?

Can someone tell me what is this Banker’s Attestation and what all do I need to do?

Thanks in advance.

Regards,

Zaib.

10 replies on this article “Minor becoming a Major – Mutual Fund Redemption Rejection”

  1. Ahmad Zaib says:

    A really strange thing happened today. UTI guys credited the amount into my bank account. I just sent them a mail a few days back stating that I had already got the new bank details updated with them, etc. etc. and this time they complied 🙂

    Saved all the fuss of bank attestation! I guess I got lucky… 😀

  2. Ahmad Zaib says:

    Thanks Paresh for the heads up. Let’s see what does Citibank charge me for this 🙂

  3. You may have further disappointment to know that most of the banks charge for signature attestation.

    We always need to go through it in cases of signature mismatches…especially in case senior citizens.

    By the way,few days back we have very similar case & it was also with uti where redemption transactions went smoothly…

  4. Ahmad Zaib says:

    Yeah I talked to them today. It seems I need to produce that signature attestation document in order to get things in order.

    Alas, I wonder when will the whole system become mature enough so that all these nonsense and trivial things can be sorted through online mediums… 🙁

  5. Dear Ahmad, this photo as well as singature attestation is to asertain that you are the original units holder.

    Thanks

    Ashal

  6. Ahmad Zaib says:

    Thanks FFC & Ashal sir,

    I’ll first try to talk to their customer care. If I succeed, then well & good, otherwise I’ll have no choice but to do this again. 🙁

    @Ashal sir: Is this attestation of photograph and signature necessary apart from sending a cancelled cheque?

    Regards,
    Zaib.

  7. Dear Ahmad, please contact your branch manager to attest your signature & photograph in that attestation letter. Send it to UTI.

    Thanks

    Ashal

  8. Ahmad Zaib says:

    Hi FFC,
    Is the banker’s attestation really necessary. Because I have already updated my details in every MF portfolio with the latest ones, i.e. the current bank. I sent a cancelled cheque leaf and the changes also reflect online in my UTI account.

    So does it imply that this much is not sufficient to prove that it is my own bank account?

    Also, in the Minor to Major Status Change form it says that I have to attach a cheque leaf. Do I have to do that again? 🙁

    Regards,
    Zaib.

    1. The cancelled cheque leaf should be enough for redemption. If your name is printed on the leaf then it makes it more authentic but I don’t think this is mandatory. Point this out to them. If they still want it not much you can do.

  9. A bankers attestation is letter signed by the branch manager that you do hold an account.
    This is necessary for redemption either by cheque or NEFT.

    Usually this is part of the ECS mandate form when enrolling for a SIP. Ask UTI if they have form for this

    or you could use this

    http://www.camsonline.com/downloads/Bank_Mandate_with_Banker_Attestation.pdf

    or make your own format removing the CAMS. Do the needful and submit to UTI

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