Dhan is a popular online investment platform that offers a range of financial instruments, including stocks, mutual funds, and digital gold. If you’re no longer using your Dhan account or wish to switch to another platform, closing it is a straightforward process. This guide will walk you through the steps on how to close Dhan account effectively in a few minutes.
What is Dhan?
Dhan is a popular online investment platform in India that offers a user-friendly interface for trading stocks, mutual funds, and digital gold. It aims to make investing accessible to everyone, regardless of their experience level. With Dhan, you can buy and sell financial instruments at competitive rates and enjoy a seamless trading experience.
How to Use Dhan App?
Before discussing how to close Dhan account, let us first understand how to use it.
- Download and Install: Download the Dhan app from the Google Play Store or Apple App Store.
- Create an Account: Sign up for a Dhan account by providing your basic details and verifying your mobile number.
- KYC Verification: Complete the Know Your Customer (KYC) verification process by submitting the necessary documents.
- Fund Your Account: Add funds to your Dhan account using net banking, UPI, or debit/credit card.
- Explore Investment Options: Browse through the available investment options, including stocks, mutual funds, and digital gold.
- Place Orders: Use the platform’s intuitive interface to place buy or sell orders for your chosen instruments.
- Track Your Investments: Monitor your portfolio performance, track market trends, and receive real-time updates on your investments.
- Utilise Research Tools: Access research reports, market analysis, and investment tips provided by Dhan.
- Set Alerts and Notifications: Customize your preferences to receive alerts for price movements, market updates, and other relevant information.
- Withdraw Funds: When you want to withdraw your funds, simply initiate a withdrawal request and provide your bank account details.
Key Features of Dhan
- User-Friendly Interface: Dhan offers a simple and intuitive interface, making it easy for both beginners and experienced investors to navigate.
- Demat Account: A demat account is automatically opened when you sign up with Dhan, allowing you to hold your investments electronically.
- Competitive Brokerage Charges: Dhan offers competitive brokerage rates, making it cost-effective for investors.
- Real-Time Market Data: Stay updated with real-time market prices and news.
- Research Tools: Access in-depth research reports and analysis to make informed investment decisions.
- Automated Trading: Utilize features like stop-loss and limit orders to automate your trading strategies.
Dhan is a powerful investment platform that simplifies the process of investing in India. With its user-friendly interface, competitive rates, and comprehensive features, Dhan makes it easy for individuals to grow their wealth. By following the steps outlined in this guide, you can effectively use the Dhan app to achieve your investment goals.
Why Close a Dhan Account?
There could be several reasons why you might want to close your Dhan account:
- Switching to a Different Broker: If you find a different trading platform that offers better features, lower brokerage charges, or other advantages.
- Unwanted Account Maintenance: If you’re no longer interested in active trading, maintaining an account might seem unnecessary.
- Cost Savings: If you’re looking to save money on account maintenance fees or other charges.
- Personal Reasons: Personal preference or dissatisfaction with the platform’s performance.
Before proceeding with account closure, make sure you have a clear reason for doing so and understand the consequences.
Things to Consider Before Closing Your Dhan Account
It’s important to prepare and check a few things before you proceed with closing your Dhan account:
1. Clear Your Holdings and Open Positions
- Sell or Transfer Stocks: Make sure you have sold or transferred any stocks, bonds, or other securities that may be held in your account. If you have open positions in the market, close them first.
- Withdraw Funds: Ensure that there are no pending withdrawals or balances in your account. You should withdraw any remaining funds before closing your account.
2. Check for Unsettled Transactions
If you have any pending transactions or unsettled funds, ensure they are completed before initiating the closure process. The process can take longer if there are any pending dues or transactions.
3. Verify Your Personal Information
Ensure that your personal information in the account is up to date, and check if there are any issues with KYC (Know Your Customer) or other verification processes.
4. Open a New Account (Optional)
If you plan to switch to another broker, you can open a new account before closing the Dhan account, so there is no gap in your trading activities.
How to Close Dhan Account in 2024? Step-by-Step Process
Now that you’ve cleared all your holdings and are ready to close your Dhan account, follow the steps below to ensure that the process is smooth.
Step 1: Contact Dhan Support
The first step in closing your Dhan account is to get in touch with their customer support. There are a few ways to do this:
- Via Email: You can email Dhan’s support team at support@dhan.co. In your email, mention that you wish to close your account and provide the necessary details like your account number and reason for closure.
- Phone Support: You can also reach out to Dhan’s customer service helpline at their official number. This number can typically be found on their website or app under the contact section.
- Chat Support: For quicker assistance, you can use the live chat feature on the Dhan app or website to get in touch with a customer support representative.
In your request, be sure to include:
- Your Dhan account number
- PAN card number (for verification)
- Aadhar number (optional, but helpful for verification)
- Your reason for account closure (optional but recommended)
Step 2: Submit a Closure Request
After reaching out to Dhan’s customer support, they will guide you through the process. You will likely need to submit a formal closure request in writing. Some brokerage firms provide an online account closure form, while others may ask for an email request.
Step 3: Clear Any Dues or Pending Transactions
Before Dhan can process your account closure, ensure that all your dues are cleared. If you have any outstanding charges (like brokerage fees, transaction fees, or any pending withdrawals), settle them. The customer service team will notify you if there are any dues remaining in your account.
Step 4: Complete the KYC Formalities
Once you have submitted the closure request, Dhan might ask for some additional KYC (Know Your Customer) documentation for verification. If all your KYC details are up to date, this step should not take long.
Step 5: Account Deactivation
Once everything is verified and cleared, Dhan will deactivate your account. They will send you a confirmation of the account closure either via email or phone.
Step 6: Destroy Any Physical Documents
If you received any physical documents, such as a trading card or login details in a welcome kit, make sure to securely destroy them to prevent any misuse.
Key Considerations:
- Demat Account: If you have a Demat account with Dhan, it will need to be closed separately. This involves clearing all securities and transferring them to another Demat account.
- Processing Time: The closure process may take 7-10 business days depending on the workload of Dhan’s support team and whether all formalities are completed.
- Charges: Make sure you are aware of any charges associated with account closure, though most brokers do not charge for closing an account, any outstanding dues or penalties will need to be settled.
What Happens After You Close Your Dhan Account?
Once your Dhan account is successfully closed, here’s what will happen:
1. No Access to Platform
You will no longer be able to log in to your Dhan account, either via the app or website. All access to your trading and demat services will be blocked.
2. Account Record Retention
Though your trading account is closed, Dhan may retain your account information in their records for regulatory purposes. This is standard practice as per the Securities and Exchange Board of India (SEBI) guidelines.
3. No Further Charges
Once the account is closed, you will not be charged any further maintenance or trading fees. However, be sure to clear any pending dues before initiating the closure to avoid delays.
4. Refund of Remaining Funds
Any remaining funds or securities in your account will be refunded to your registered bank account. This process could take a few days, depending on the transaction speed.
Alternatives to Closing Your Dhan Account
If you are considering closing your Dhan account due to dissatisfaction or high charges, there are a few alternatives you might consider before taking the final step:
1. Downgrade Your Plan
If your primary reason for closing your account is high fees, consider downgrading your plan to a more affordable one. Dhan offers different plans based on your trading volume and needs. Speak to customer support to see if they offer more economical options.
2. Temporary Suspension
If you are not actively trading but don’t want to lose your account, you may request a temporary suspension or deactivation. This would prevent your account from being charged without permanently closing it.
3. Transfer to Another Broker
If you plan to switch brokers, you can transfer your holdings to another broker without closing your Dhan account. This will ensure you do not lose your stocks while transitioning to a new platform.
Common Issues When Closing a Dhan Account
While closing a Dhan account is a straightforward process, there are some issues you may encounter. Here are a few common challenges and how to deal with them:
1. Pending Funds or Securities
Sometimes, there may be pending withdrawals or transfers of securities. Ensure all your funds are cleared before initiating the closure to avoid delays.
2. Documentation Issues
If your KYC details are outdated or incomplete, Dhan may request additional documents. Make sure your documentation is up to date to avoid delays.
3. Account Fees
Some account closure requests may take longer if there are fees still due. If you are facing issues with fees or charges, contact customer support to resolve them.
Read More: What is Sum Assured in LIC?
Wrapping Up
Dhan is a perfect investment platform packed with the essential features traders and investors often ask for. However, if you wish to know how to close Dhan account then you can read the process outlines above. Closing your Dhan account is a simple procedure that can be completed in a few steps. By following the guidelines provided in this guide, you can effectively terminate your account and move on to other financial platforms if needed.
FAQs About Closing Dhan Account
Can I reactivate my closed Dhan account?
The reactivation process may vary depending on the circumstances. It’s advisable to contact Dhan customer support for specific information.
What happens to my funds after closing the account?
Any remaining funds in your account will be transferred to your linked bank account. Ensure that your bank account details are up-to-date before closing.
Can I close my Dhan account without visiting a branch?
Yes, you can close your Dhan account entirely online.
How long does it take to close a Dhan account?
The closure process typically takes a few business days to complete.
Can I transfer my investments from Dhan to another platform before closing the account?
Yes, you can transfer your investments to another platform. However, it’s recommended to consult with Dhan customer support for specific instructions and to ensure a smooth transition.