Perpetual SIP mandate is NOW limited to 30 years

As per the recent NACH circular, w.e.f. 1st October 2023 onwards period for which a mandate can be issued for Perpetual SIPs is limited to 30 years.

However, there is no such restriction for the Perpetual SIPs issued prior to 1st October 2023.

Earlier there was no limit for the SIP mandate period for Perpetual SIPs. Once the SIP is initiated, every month SIP amount will be debited from the account holder’s account for an indefinite period since there is no fixed tenure for Perpetual SIPs.

The key difference between the Normal Mutual fund and Perpetual Mutual fund is the “Tenure”.

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