Mutual fund SIP Auto-Debit Failed — Unit Purchase Missed
First Steps — Verify & Initiate
1
Confirm the SIP failure: check your bank statement for the failed auto-debit and check the AMC’s portal for the SIP transaction status. The AMC will also send an SMS or email notification for failed SIPs.
2
Identify the reason for failure: (a) Insufficient balance — most common; (b) NACH mandate rejected — the ECS/NACH mandate registered with the bank was not activated or has been cancelled; (c) Bank account closed or changed — the SIP mandate still points to the old account.
3
Under SEBI circular dated January 3, 2024 (effective April 1, 2024): SIPs with daily/weekly/fortnightly/monthly frequency are auto-cancelled after 3 consecutive failed payments; SIPs with quarterly/half-yearly/yearly frequency are cancelled after 2 consecutive failures. The AMC must notify you after the first failure. SIP cancellation requests must now be processed within 2 working days (effective December 1, 2024). After auto-cancellation, you must register a new SIP.
4
Check whether this was a one-off failure or a recurring pattern — recurring failures indicate a systemic issue with the mandate or bank account.
5
For NACH mandate failures: check with your bank whether the NACH mandate is registered and active. Some banks require separate activation of NACH mandates.
Follow-up Steps — Next 2–4 Weeks
1
For a one-off balance failure: ensure sufficient balance in the account before the next SIP date — the SIP will automatically trigger next month.
2
For NACH mandate failure: re-register the NACH mandate with the AMC through the AMC portal or your distributor — allow 20–30 days for activation before the next SIP date. Do not wait until the SIP date to check activation status — verify the mandate is active 5 days before the next debit date.
3
For a changed bank account: update the bank mandate with the AMC and simultaneously update the NACH mandate — both must match.
4
If you want to make up for the missed instalment: you can make a one-time lump-sum purchase in the same fund at the current NAV — this is separate from the SIP and must be done manually.
5
If the SIP was cancelled due to 3 consecutive failures: re-register the SIP with the correct bank account details.
Escalation — If Still Unresolved After 30 Days
1
If the bank debited your account but the AMC did not allot units: this is a payment received without unit allotment — raise immediately with the AMC and file on SCORES if unresolved.
2
If the NACH mandate registration is repeatedly failing despite correct details: file a complaint with your bank (for NACH registration issues) and with the AMC (for SIP processing).
3
Contact NPCI for persistent NACH-related failures: npci.org.in.
Prevention — Keep Your Investments Accessible
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Keep a buffer of at least 1.5 times your monthly SIP amount in the registered bank account on SIP debit dates.
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Set a calendar reminder 3 days before every SIP date to verify account balance.
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Register your SIP on a primary salary account where balance is predictable, not a savings account that may run low.
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After any bank account change: immediately update SIP mandates at all AMCs — do not wait for a SIP failure to discover the old mandate is still active.
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Your Rights
SEBI regulations require AMCs to process SIP investments on the registered date. If the bank deducted money but units were not allotted, this is an AMC processing failure — the AMC must allot units at the NAV of the date the funds were received. You have the right to continue your SIP without any additional penalty if a failure was caused by a technical issue rather than your own insufficient balance.
Key Contacts & Portals
| Who / What | Contact / Action |
|---|---|
| Your AMC’s SIP helpline | Call with folio number and SIP registration ID |
| NACH / NPCI | npci.org.in | 1800 120 1740 |
| Who / What | Contact / Action |
|---|---|
| SCORES | scores.sebi.gov.in — for unit allotment failures |
| AMFI | amfiindia.com — for AMC service complaints |