By Rahul Vats Changing your linked bank account in a Demat account is a common requirement—whether you’ve switched banks, closed an old account, or want smoother fund transfers. While the process is simple, it must be done carefully to avoid transaction issues or delays.
In India, Demat accounts operate under strict regulations set by SEBI and are maintained through depositories like NSDL and CDSL. Let’s understand the complete process step by step.
What is a Linked Bank Account in Demat?
A linked bank account is the account connected to your trading and Demat account for:
- Adding funds to buy shares
- Receiving money after selling shares
- Handling dividends, refunds, and payouts
Without a valid bank account, you cannot conduct your trading activities smoothly.
When Do You Need to Change Your Bank Account?
Here are common situations:
- Your old bank account is closed
- You switched to a new bank
- You want a primary account with better services
- Your existing account has transaction issues
Types of Bank Account Changes
✔ Primary Bank Account Change
This is the main account used for withdrawals and payouts.
✔ Secondary Bank Account Addition
You can add multiple bank accounts, but only one remains primary.
Online Process to Change Bank Account
Most brokers (Zerodha, Groww, Upstox, Angel One, etc.) offer an easy online method.
Step 1: Log in to Your Broker Account
Access your trading account using your ID and password.
Step 2: Go to Profile / Bank Details Section
Look for “Bank Account” or “Funds & Accounts” settings.
Step 3: Add New Bank Account
Enter:
- Account holder name
- Account number
- IFSC code
- Bank name
Step 4: Upload Proof
Submit documents like:
- Cancelled cheque
- Bank statement
- Passbook copy
Step 5: Verify via OTP / eSign
Complete Aadhaar OTP verification or e-sign process.
Step 6: Set as Primary Account
Once approved, select the new account as your primary bank.
Step 7: Wait for Approval
Approval usually takes 1–3 working days.
Offline Process (If Online Not Available)
If your broker does not support online changes:
- Download the “Bank Modification Form”
- Fill inthe new bank details
- Attach required documents
- Sign and submit to your broker
Important Documents Required
To change your bank account, you may need:
- Cancelled cheque (with your name printed)
- Bank passbook or statement
- PAN card
- Aadhaar card (for verification)
Key Points to Remember
- The bank account must be in your name
- Joint accounts must match the Demat account holders
- An incorrect IFSC or account number may lead to rejection
- Always double-check details before submission
Common Reasons for Rejection
Many users experience rejection when updating their bank details. Here’s why:
- Name mismatch between the bank and the Demat account
- Blurred or invalid documents
- Incorrect IFSC code
- Non-self-attested documents (in offline mode)
How Long Does It Take?
- Online process: 1–3 working days
- Offline process: 3–7 working days
Charges for Changing Bank Account
Most brokers offer this service free of cost, but some may charge a small fee in offline cases.
What happens after changing bank accounts?
Once your bank account is updated:
- All withdrawals will go to the new account
- Old bank account (if removed) will no longer receive funds
- Dividends and payouts will be credited to the updated account
Final Thoughts
Changing your linked bank account in a Demat account is a simple but crucial process. It ensures that your funds are credited correctly and your trading experience remains smooth. With digital verification and online processes, most updates can be completed within a few days.
However, accuracy is key—small mistakes can delay approval. Always verify your details and keep documents ready to ensure a hassle-free update.
If you face any issues, contacting your broker’s support team is the fastest way to resolve them and avoid financial disruptions.
FAQs on Demat Account Bank Change
Q1. Can I change my bank account online in Demat?
Yes, most brokers allow online updates through profile settings.
Q2. How many bank accounts can I link?
You can link multiple accounts, but only one can be primary.
Q3. Can I withdraw money immediately after changing bank accounts?
Usually yes, but only after the new account is approved.
Q4. Is Aadhaar required for a bank change?
For online verification, Aadhaar-based OTP is commonly used.
Q5. What if my request gets rejected?
Check the reason, correct errors, and reapply with proper documents.
Q6. Can I use someone else’s bank account?
No, the bank account must be in your name.
Q7. Will my trading be affected during the process?
Trading usually continues, but withdrawals may be temporarily restricted.