Benefits of ASBA
Here are some of the distinct benefits for investors who apply through the ASBA process:
1. Investor Continues to Earn Interest: You do not lose interest income while money is blocked in your bank account. You continue to earn interest on the cash you have set aside. Also, this blocked amount is taken into consideration when calculating the account’s Average Quarterly Balance.
2. No Cheque and Demand Draft Involved: The ASBA eliminates the need to send money in the form of cheques and demand drafts.
3. Investor Friendly: The ASBA facility is simple to use and free of charge. You can apply online without presenting any physical documentation.
4. Makes the Refund Process Simple: Investors do not need to be concerned about refunds. If no shares are allotted, the funds are released from your bank account for future usage.