🔔 General Information Update – SIP Rejection Notice:

SIP Rejection Notie

Here’s what happens if your SIP (Systematic Investment Plan) is rejected due to insufficient balance:

1. Transaction Fails – The SIP amount won’t be deducted from your bank account, and no mutual fund units will be purchased for that installment.

2. No Penalty from AMC – The mutual fund company (AMC) does not impose any penalty or fine. It simply skips that month’s SIP.

3. Bank Charges (Possible) – Some banks may charge a penalty (₹200–₹500 approx.) for the failed auto-debit (just like an EMI bounce charge). This depends on your bank’s rules.

4. Next SIP Continues as Usual – The following month’s SIP will continue as scheduled, provided you have sufficient balance on the debit date.

5. Repeated Rejections –

   • If your SIP bounces multiple times in a row, the AMC or bank may cancel your SIP mandate.

   • You may need to re-register the SIP if it gets cancelled due to repeated failures.

6. Impact on Investment Goal – Missing SIPs reduces your invested amount, which may affect long-term wealth creation (compounding effect is lost for skipped months).

👉 Example:If you planned a ₹5,000 SIP for 12 months (₹60,000 total), but 2 installments fail due to insufficient balance, you would invest only ₹50,000. Over long-term compounding (say 12% returns for 15 years), this could reduce your wealth by several lakhs.