DPs were advised to update the MICR code in the DPM system, if not updated, in respect of Clients residing in 15 centers where clearing houses are managed by Reserve Bank of India (RBI). Securities and Exchange Board of India (SEBI) vide its letter no. MRD/DEP/PP/91405/07 dated April 17, 2007 has informed NSDL to instruct DPs to update MICR code while updating the bank account details of the demat account holders. Extract from the letter is reproduced herewith:
"Some of the Merchant Bankers & Registrars to Issue had brought to SEBI's notice that in some cases, when the investors change their bank accounts, the DPs do not update the corresponding change in MICR code while updating their bank account details. This results in the refund advice sent through Electronic Clearance System (ECS) being rejected or credit done to wrong bank account."
In view of the aforesaid, NSDL has advised DPs to :
- Communicate to all Clients residing at 15 centers (for the list of centers refer RBI website http://www.rbi.org.in under Electronic Clearing Service) to provide details of MICR code, if not already updated in the DPM system.
- Ensure that the details of MICR code are updated in the DPM system for all new accounts as well as changes in bank details of existing accounts with respect to Clients residing in 15 centres.
This has been informed to DPs vide Circular No. NSDL/POLICY/2007/0023 dated April 24, 2007.