Central Depository System (CDS) not only provides convenience to its clients through custody & movement of electronic book-entry securities but also offers various other features which makes it extremely easy for clients to manage their securities portfolio. One such feature is called Bank Mandate.
Through Bank Mandate functionality, account holders (both IAS as well as Sub-Account) can have their dividends directly credited in their bank accounts by providing their bank account details at the time of account opening or subsequently through a written request.
The importance of this highly convenient option is immense as physical mode of receipt of dividends entails the risks of wrong delivery, misplacement and/or loss of dividend warrant causing inconvenience to the account holders. Bank Mandate functionality provides a seamless option of receiving the dividends directly in ones bank account thereby saving the time and hassle involved in deposit and clearance of the dividend warrant. We strongly recommend accountholders to use this facility to avoid unnecessary inconvenience.