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Ch.4 · SEBI Mutual Fund Regulations · medium

What is the maximum cash limit for redemption proceeds that a mutual fund can pay in cash?

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EXPLANATION

Mutual fund redemption proceeds must be paid only through banking channels (NEFT, RTGS, cheque, or direct credit to bank account). Cash payments are not permitted for redemptions under any amount, as per SEBI and PMLA requirements.

A.₹10,000

B.₹20,000

C.₹50,000

D.Redemption proceeds cannot be paid in cash at all [✓ Correct]

EXPLANATION

Mutual fund redemption proceeds must be paid only through banking channels (NEFT, RTGS, cheque, or direct credit to bank account). Cash payments are not permitted for redemptions under any amount, as per SEBI and PMLA requirements.

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