Modern technology in the banking world has gifted people with the utmost convenience. One example of digital technology simplifying our lives in terms of payments is the eMandate. Delve deeper to discover crucial details about eMandates and how they work.
What is an eMandate?
An eMandate refers to the standard instruction customers need to give their issuing bank and other institutions. This instruction gives the permission to automatically debit the required amount from the bank account.
The Reserve Bank of India and the National Payments Corporation of India introduced the digital payment service of eMandates. Indian businesses can use it as the underlying infrastructure for collecting recurring payments without the need for human interaction.
What is an eMandate in Mutual Funds?
An e-Mandate in mutual funds is an electronic authorisation provided by an investor to their banks to enable automatic recurring payments. E-Mandates allow investors to automate their Systematic Investment Plan (SIP) instalments by giving consent to mutual fund houses to debit a specific sum of money from their bank accounts at a specified time interval.
How to Register for eMandate?
After knowing the eMandate meaning, you need to understand how you can register for it:
Step 1: Visit the eMandate link provided on your bank’s website.
Step 2: You will now see the eMandate login page, where it is necessary to enter the 14-digit account number and the last four digits of the registered mobile number.
Step 3: After filling in the boxes, you will find an OTP on your registered mobile number. Provide the OTP and hit the submit button.
Step 4: Complete the eMandate form with the required information. After filling it up, check the Terms and Conditions box.
Step 5: In the final step, you will have to complete the transaction on the bill desk page. You will be able to complete the transaction using a debit card or via net banking.
Once the authentication process is over, you will get a confirmation and receipt for the NACH eMandate in your registered email address. You should keep a printed copy of the receipt for future requirements.
Features & Benefits of eMandate
Some of the advantages and features of eMandates are as follows:
Hassle-free Payments
Business owners will find eMandates convenient for automatically debiting payments from the accounts of customers. It can remove obstacles in payments and guarantee that business owners receive timely payments from customers. It also ensures that customers don’t have to log into the business website to make the payment.
Simple Registration Process
The process of registering for eMandates is extremely simple. Once you are done registering, you won’t have to worry about making or receiving payments.
Extremely Secure
You will never have to be worried about the security of eMandate transactions. The central framework behind this facility is based on the latest Reserve Bank of India (RBI) regulations for safety.
Better Customer Retention
When businesses auto-debit from the accounts of their customers, it becomes easy to maintain their payments cycle. Therefore, the chance of retaining customers increases. Moreover, customers are able to enjoy uninterrupted products and services. It further helps in creating a loyal customer base.
Greater Transparency
The overall process of eMandate registration can be completed online. Therefore, the process is completely transparent. You will discover no hidden charges associated with the registration process, which increases its legitimacy.
Simple Maintenance
All transactions via eMandates are tracked and captured online. Therefore, it is cheaper and easier to maintain data.
Eligibility of eMandate
The eligibility criteria for eMandates are as follows:
You need to have a valid Aadhaar card, and your bank account should be linked to that Aadhaar card.
The financial establishment should be registered to deliver National Automated Clearing House (NACH) services.
The different documents necessary to set up eMandates are as follows:
A valid Aadhaar card
A properly filled eMandate form, which is available online
A working mobile number registered and linked to the bank account and Aadhaar card
A bank account
At times, your eMandate request might get rejected. The common reasons behind eMandate rejection are as follows:
You haven’t entered the right bank account details.
Your bank or financial institution does not offer a National Automated Clearing House (NACH) service.
You have entered an incurred folio number or other information.
Types of eMandate
The eMandate process has two different categories that allow it to work two ways. The two different categories are as follows:
Debit Mandate
Once a debit mandate gets approved, it enables banks to debit the necessary amount from your account periodically for a variety of payments. Maybe you have started a monthly SIP of Rs 2000. In that case, this amount will get deducted by the bank every month for a specific purpose. It ensures that you don’t forget to make your payments.
Credit Mandate
A credit mandate ensures that all your payments get credited automatically and at the right time.
Final Words
eMandates have transformed the banking sector by getting rid of the need for paperwork and cutting down on transaction times and processing expenditures. It is crucial to keep in mind that the transaction will fail without sufficient funds in the bank account to process the eMandate. Therefore, account holders need to maintain adequate funds to prevent a failed transaction.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
FAQ's
An eMandate involves giving your bank permission to debit a certain amount from your bank accounts for specific payments. You will need a one-time password to set up the eMandate, and after that, all payments will happen automatically.
The top guidelines prescribed by RBI for eMandate transactions are as follows:
eMandate transactions over Rs 15,000 must be set up with Additional Factor Authentication.
Every subscription should have separate eMandates for automatically collecting recurring payments.
Banks will have to allow customers to withdraw an eMandate at any time.
Banks need to inform customers at least 24 hours before the eMandate transaction.
A post-debit notification should be sent to all customers.
The ECS involves physical checking of forms and documents. But eMandates are complete online and require no paperwork.
The processing of an eMandate requires a maximum of two days for processing and approval.
Home Loans
Personal Loans
SME Loans
Business Loans - Udyog Plus 
Loan Against Securites
Loan Against Property
Mutual Fund
Stock and Securities
Wealth
Portfolio Management Services
Pension Funds
Life Insurance
Health Insurance
Wellness Solutions
Pay Bills
Pay for anything
Pay Anyone
Pay on Call
Payment Lounge
Credit Cards
1800-270-7000
AppStore
Playstore
Thank You
Message will change according to your requirement.