Streamline your bank, demat accounts, mutual fund folios this Diwali: Here's how

While you take up cleaning for your home ahead of festivals, it makes sense to carry out a similar activity with financial assets such as bank accounts, demat accounts, mutual fund investments and insurance policies. This will not only ensure good maintenance of finances but also provide a consolidated view your financial status.

Bank accounts
Bank accounts that are not being used for a long time should be closed as they are designated as dormant and may invite penalty. Any balance should first be transferred to an active account. Account closure can be done by visiting the home branch and filling up the form for closure and returning all cheque books, ATM cards, debit cards and credit cards linked to the account.

Demat accounts
Investors can consolidate their demat holdings into one demat account by placing an off-market transaction request. An off-market transaction is carried out using the Depository Instruction Slip (DIS) to be filled up for all the holdings that need to be transferred. An account closure request needs to be submitted with the DIS, requesting transfer of securities to the designated demat account.

Mutual Fund folios
Investors can get a consolidated view of their holdings across mutual funds with the Consolidated Account Statement (CAS) sent on a monthly or half-yearly basis. They can combine all their holdings (with similar pattern, order, tax status) with a particular mutual fund under a single folio. A folio consolidation form needs to be signed and submitted to the fund house.

Insurance policies
Insurance policies held across insurance companies can be consolidated into a paperless form by opening an e-Insurance account. Form can be accessed at https://nir. ndml.in/pdf/ndml-form-opt2.pdf. Alternatively, one can fill up an online e-Insurance account opening form at https://nironline.ndml.in/NIR/onlineEiaApplicationHome.html.
Upon verification of KYC documents, the insurance repository will open the online account and communicate login id and process to set your password. Existing physical insurance policies can be converted to electronic policies by filing up a conversion form.

(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)