57. Encashment of Mutual Fund

Certificates without PAN Card

Question: Hi, Thanks for the wonderful service to NRI community world wide. I need some information from you for my questions/concerns. I left India in 1992 and at that time there was no such thing as PAN. I had purchased some SBI Mutual fund certificates around 1990 which were matured in 1995. However, I was out of India, totally forgot about those certificates and all my bank accounts were in-operative for an extended period and they are all defunct now. Last year, while in India on Visitor visa, going through some papers, I came across these SBI Mutual fund certificates and visited one SBI Branch and tried to encash these certificates. They sent me to their Main Branch and the Main Branch sent me to Mutual Fund Office in New Delhi. Finally they were ready to pay me outstanding amount, but they wanted my PAN card! I told them, that I do not have a PAN card, and requested them to credit the money to my NRE Savings account in ICICI Bank, which they refused. So, without any other way, I tried to apply for a PAN card while I was in India, but they wanted proof of address, ( I thought I can submit an ICICI bank statement, but they email me a statement every month, which show neither my name nor my address, that's another storey). My question is, why can't I get my certificates encashed without a PAN card, as I bought them when there was no such thing as PAN card? Is there a way around? Your reply and help is highly appreciated. Regards Sri Answer: As of 1st Jan 2008, quoting of valid PAN is mandatory for all investments in India. The bank officials hence could not legally have cashed your certificates in the absence of a Pan Number. If you are still in India then you should contact a branch of the ICICI bank and they should be able to print a statement for you showing your address. Axis Bank where I have an NRO and NRE account sent in an application for a PAN Card on my behalf and I was able to get it in three weeks. If you have left India then you can apply for your Pan Card online. When you are able to cash your certificates I think you may have to deposit them in your NRO account as depositing in NRE account may not be allowed as you bought these certificates before leaving India and that must have been in purchased with Indian Rupees. I realize some of the procedures in India can frustrate many NRIs who visit India for a short duration but they are a part of the system and we all have no choice but to follow the rules.