How to Link Your Demat Account with Your Bank Account for Seamless Trading?

If you are thinking of opening a trading account or a demat account, then you need to know how to link that demat account with your bank account. A demat account is one in which you hold all the securities you own in a dematerialised or electronic format. Besides, you need a trading account to buy or sell securities you hold in your demat account. However, you need to link your demat account to your bank account.

When you open a demat account or a trading account, your depository participant (DP) or broker will ask you for your bank details. Your DP will have to link your demat account to your bank account. However, if your demat account has not been linked to your bank account, you can do it by following the steps below.

 Through the portal of your broker

1. You need to find an option called “Request to Change Bank Account” on your profile when you log into your broker’s website.
2. Bear in mind that you need to upload the proof of the bank account you want to link to your demat account.
3. Then, your broker will verify the details of the bank account you have provided with the proof of that bank account. Once the verification is done, your DP will send you an option for eSign. After you have done the eSigning, your bank details will take 24-48 working hours to get updated with your broker.

However, the process described above can update the details of your bank account only in your trading account. If you want to update your bank details in your demat account as well, you have to follow the offline process, which is explained below.

1. You will have to request your broker to provide you with a bank update form for your demat account by either calling him, sending an email, or raising a ticket.
2. Your broker’s customer care team will send the form to your registered email address.
3. After getting the form, you should take its printout. Then, you should fill it out and sign it. Then, you should attach a self-attested bank proof with it, which can be a cheque or your passbook’s front page.
4. Finally, you need to send the form through courier to the office of your broker.
5. After your broker receives the form, it will take him 48-72 working hours to update your bank account details in your demat account.

 Through netbanking or the mobile app of a bank

There is another way to link your demat account with your bank. You can do it through netbanking  or the mobile app of the bank in which you have your account by following these steps:

1. First, you should log in to netbanking by visiting the website of your bank.
2. Then, you should go to the profile setting section of your bank account.
3. There must be an option called “Link Demat Account” or something very similar to it.
4. You should provide your demat account details here, which includes your demat account number and your broker’s or DP’s name.
5. You will have to provide details like your IFSC Code and the number of your bank account.
6. Now, you should submit the request to link your bank account to your demat account.
7. Verification will take place to ensure that all the details you have provided are correct.
8. After the verification is done, your demat account will be linked to your bank account.

 Conclusion

When you link your bank account to your demat account, you can get many benefits. For example, when you sell securities from your demat account, the money thus received can be directly transferred to your bank account. Besides, it offers faster settlements and easier management of your investments.