Do you have an SBI Demat account? Does the Demat account remains active or is currently inactive? The bank charges annual fees and maintenance charges for the Demat accounts.
If you are not actively using the Demat account with State Bank of India, you must close the account to avoid paying the charges.
If the Demat account has zero balance, it would be easier for you to close the account but if the account has any active balances, you can merge it into one account.
The traditional method to close the unused Demat account is visiting the branch. But with the advancements and modernization in the banking sector and banking services, you need not visit the branch to close the SBI Demat account. You can close the unused SBI Demat account online.
Steps to Close SBI Demat account online
Step 1: Visit the official SBI website of the DP- Depository’s Participants. From the official SBI website of the DP, search for the application form. Otherwise, you can download SBI Demat account closure form from here https://www.sbismart.com/sites/default/files/forms/closure%20C01.pdf.
Note: The DPs get registered with Securities Exchange Board of India- SEBI and play the role of agents for the depositors.
Step 2: Enter the credentials in the application form without any error. You require entering Client ID, DP Id, Name, and Address as per the records. Details like name and address should be matched with SSL records. You need to specify the reason for closing the account.
If there is any fund in the Demat account you want to close, make sure to provide the bank account details to which you want to transfer the fund. Signature of an account holder should be matched with records.
Step 3: Complete the closure form in all respects and courier the application to the address given in application form. Otherwise, visit the nearby branch and submit the form. It will take around 7-10 working days for processing your request.
Important Note: You need not pay any charges to close the unused Demat account. But, if the account has any negative balance, you need to clear the dues before closing it. If the account is empty, you need not pay any charges.