There is no possibility of a user having a sweep in/out account linked to their IPO application. It would simply get rejected.
Let’s first understand the meaning of sweep in and out account. Firstly, it is a savings account. Its main function is to transfer money from your savings account to an FD whenever the balance exceeds a certain limit.
The limit is called the sweep-in limit. This account is thereby opened to help the holders save more money and earn interest by transferring it into an FD.
It is also called a Sweep-Out account because it works the other way as well. So, whenever your account has less money, a small portion will be automatically transferred from your FD. In short, your savings bank account will always have sufficient balance.
In an IPO application, the bank details that you might fill needs to be that of a savings account under your name. It’s required to have integrity with the other details that you might have given along with the application. However, when you look into the different types of bank account details that aren’t allowed, then-current, sweep in/out accounts aren’t allowed.
The account needs to be a normal savings account with the amount you are looking to invest in the IPO and linked to your Demat account. Ensure that you have the amount; if not, there are higher chances of the application being rejected, and there might be some penalties or fines for the insufficient funds in your account.