Demat Trading

How to transfer money from Demat Account to Bank Account?

5 min read

May 6, 2026

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Transferring money from your demat account to your bank account is a simple process that allows you to access the funds from the sale of securities or dividends. However, to ensure a smooth and hassle-free transaction, you must follow the correct steps.

Whenever you sell any securities (Stocks, Mutual Funds, Bonds etc.) the funds are or can be transferred based on the scenarios given below:

If the linked bank account with your trading account is an Axis Bank account, the mount is automatically transferred to your bank account, if you have approved the transaction by submitting a Bank Mandate Letter (BML) (Please click here to know how to register the BML online and offline)
If you have a Non Axis Bank account linked with your trading account, you would have to give a payout request, this could be done through any of the methods given below:
- Mobile Apps:
  Investor: Click on your name >> Click on Funds >> Withdraw Funds
  Traders: Click on your name >> Click on Funds >> Withdraw Funds
- Calling the customer care team or your mapped RM

The amount is credited in,

T+1 working day in cases of Equity, ETF, & FNO trades

T+2 working days in case of Mutual Funds

Linking your bank account with your demat account

To transfer funds, your demat account must be linked to a valid bank account. This link is easily accessible at the time of opening your demat account. If you haven't done this yet, you can usually link your bank account via your demat account provider's portal or by submitting the required forms. Also, you must confirm that the names on both the accounts are same for successful money transfers. Some brokers may require additional verification steps before the accounts can be linked.

On Online platforms:

Traders & investors:

Step 1: Click on your name or the initials of your name on the top

Step 2: Personal & contact details

Step 3: Edit Profile

Web portal:

Step 1: Please click here & login to the account to access the ‘My Profile’ page.

Step 2: Scroll down to the Account Details field and click on the Modify next to bank name

Step 3: Complete E-sign process

Also Read: What Is A Demat Account? All You Need To Know

Conclusion

Transferring money from your Demat Account to your linked bank account is a very simple process and can be done by beginners too. By ensuring that your Demat and bank accounts are properly linked and by following the step-by-step guide, you can easily access your funds. But, it's highly recommended to verify your bank details before confirming any transaction to avoid errors. Regular monitoring of your Demat Account can help keep your transactions smooth and efficient.

Frequently Asked Questions

1. How long does it typically take for the transferred funds to reflect in my bank account?

The amount is credited in, T+1 working day in cases of Equity, ETF, & FNO trades and T+2 working days in case of Mutual Funds.

2. Can I transfer money from my demat account to any bank account?

No, you can only transfer funds to a bank account that is linked to your Demat Account. The bank account can be in the same or a different bank. Ensure that your bank details are updated in the system for successful transactions.

3. What should I do if the transfer is not successful?

Please follow the processes given below in case of failed transfers:

1) Check your bank statement for the narrations starting with “Axis Direct”
2) If no Credit narration found, check with the bank if the bank account was active at the time of transaction
3) Contact Axis Direct Customer care or get in touch with your mapped RM or Click here to raise a ticket for your issue
4) You can also send a “Hi: to 7777 096 543 from your registered mobile number on demat and speak with the Axis Direct customer service team on WhatsApp, just select “Need more help” from the main menu

4. Are there any charges associated with transferring money from a demat to a bank account?

No, there are no charges to update the bank account with Axis Direct.

5. Is it possible to automate transfers from my demat account to my bank account?

If the linked bank account with your trading account is an Axis Bank account, the mount is automatically transferred to your bank account, if you have approved the transaction by submitting a Bank Mandate Letter (BML) (Please click here to know how to register the BML online and offline)

6. How to change the linked bank account on your Axis Direct account?

On Online platforms:

Traders & Investors: Click on your name or the initials of your name on the top >> Personal & contact details >> Edit Profile

Web Portal: Please visit; (https://login.axisdirect.in/?redirectPage=My%20Page) & login to the account to access the ‘My Profile’ page >> Scroll down to the Account Details field and click on the Modify next to bank name >> Complete E-sign process

To know the steps on how to change the Address online, please click on the link below:

Visit; (http://simplehai.axisdirect.in/images/Processupdates/Account_Maintenance/How-to-change-or-update-bank-account-online---Axis-Direct-web-portal-2.pdf)

Please Note: If you have an active Mutual Funds SIP, you would have to follow the offline process to change the bank account and the SIPs. In such cases if you are linking a non Axis Bank account, you would have to cancel the current SIP and re-initiate the SIPs to accept a mandate for future SIP payments.

Offline Mode (Joint Account Holders, NRIs & Non - Individuals):

Please send us the following documents after obtaining an In Person Verification (IPV) and an Original Seen Verification (OSV) at the nearest Axis Bank branch and submit it to them or send it to us at the address mentioned below:

1) Duly filled and signed Common Modification Form (Click Here to download the Common Modification Form)

2) Update BML Online (visit; (https://simplehai.axisdirect.in/images/Processupdates/BML/Online-BML.pdf) to know the process) or send the Bank Mandate Letter (BML): visit; (https://simplehai.axisdirect.in/images/Processupdates/Bank-Mandate-Letter.pdf) to download the form (If the new account is an Axis Bank account –In Case of linking only to the Demat account, the BML is not required)

3) Self-attested PAN card copy.

4) Self-attested copy of the bank proof (Latest Bank statement/ pass book/ personalized cancelled cheque leaf). (Preferred in case of Non - Axis bank accounts)

Once we receive the documents the Axis Bank account will be linked to your trading account in 3 working days, if no rejections are observed.

7. Can I Link a Current account in the trading account?

Before offering this process, please ask the customer if he/she has the same PAN on the current and the savings account, in case of separate PANs this process will not be applicable.

The customer needs to submit the following documents to link a current account with the trading account:

1. Common modification form (Download path: https://simplehai.axisdirect.in/downloads >> Other Forms - 56 >> Common modification request form
2. Cancelled cheque copy
3. BML
4. Proprietorship letter from the bank
5. All documents must be self-attested by the client and include the proprietorship stamp.

Disclaimer:This article is intended solely for informational purposes. The views expressed in this article are personal. Axis Bank and/or the author shall not be liable for any direct or indirect loss or liability incurred by the reader arising from reliance on the content herein. Readers are advised to consult a qualified financial advisor before making any financial decisions. Axis Bank does not endorse or guarantee the accuracy of any third-party content or links included in this article.