Insufficient funds in your bank account on SIP due date!!

What happens if your Mutual Fund Sip is registered for ECS/Auto debit  and there is insufficient funds in your bank account on sip due date?

If the ECS instructions/ Auto debit bounces on sip due date, the units allotted would be reversed. The SIP will continue. Fund houses are usually quite lenient in these matters and will overlook one or two instances of an SIP ECS/auto debit bouncing, and will not charge anything for reversal and will not produce the sip again if  transaction got reversed.

Your Bank may charge you for reversal of transaction and charges differ from bank to bank.

However if there are three recurring instances of SIP bounce then the SIP registration would be discontinued.

The Scheme Information Documents do contain details of when an SIP will be ceased. For example, it may be mentioned that if an SIP auto debit isn't honoured for a few consecutive instalments (the exact number of instalments — usually three — will be mentioned in the scheme documents for the respective fund), the SIP will be ceased and a communication will be sent to the investor.

 I have registered an SIP with auto debit. I wish to change the bank from which the amount is being debited. Can I change the bank mandate from which the SIP amount is currently going ??

 Yes, bank mandate can be changed. A fresh SIP Auto Debit Form has to be issued for the same.

The SIP auto-debit form of mutual funds contain the option to  Change bank mandate.  Investors may select this option in the form and submit it at either the mutual fund's branch, Karvy or CAMS Service Centre. It will take approximately 30 days to effect the change, and for debits to go to the new bank. 

For Change in SIP Bank mandate you have to submit:

1. Fresh SIP Mandate dully filled and signed by the investor

2.  cancelled cheque leaf of the new bank 

Also refer

Can I Cancel my SIP before the tenure??