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.
Disclaimer: Information provided is for general knowledge only and should not be
deemed to be professional advice. For professional advice kindly consult a professional
accountant, immigration advisor or the Indian consulate. Rules and regulations do
change from time to time. Please note that in case of any variation between what has
been stated on this website and the relevant Act, Rules, Regulations, Policy Statements
etc. the latter shall prevail.
Read Disclaimer at bottom of page