As per the circular (PDF), starting April 1, 2024, AMCs will cancel your SIP if payment for three consecutive instalments fails, effective from April 1, 2024. If your SIP gets cancelled due to payment failures, you need to create a new AMC SIP to continue investing.
AMCs may also decide to cancel the SIPs for these reasons:
- Merger of schemes.
- Suspension or restrictions on schemes.
- Consolidation of schemes.
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Winding up of schemes.
Zerodha SIPs will not be cancelled if payment for three consecutive SIPs fails. However, they will be cancelled if the scheme has undergone any corporate action, like a merger, or if it has been suspended.