What is e-Mandate: Get a snapshot of its process, benefits and more

Updated on: 12 Oct 2023

Knowing what is e-Mandate and its benefits can help you make payments more conveniently. Before the dawn of the digital era, you had to make payments in person or through cheques. Today, with a range of electronic payment options, you need not worry about writing a cheque or visiting your bank. You also need not stress about late payments or forgotten due dates. One of the most widely accepted and preferred options to automate payments is using an e-Mandate.

An e-Mandate, meaning a standing instruction that allows merchants or banks to auto-debit any recurring payments from your account, makes your life simpler. Opting for this facility allows you to authorise debits or credits from or to your bank account without manual intervention.

Read on to learn more about the e-Mandate process, its types, benefits and more.

e-Mandate Process

The e-Mandate is a payment system introduced by the National Payments Corporation of India. If your bank is registered to provide NACH services, you can set up an auto debit instruction related to your bank account with ease. All it takes is logging into net banking.

To set up an e-Mandate, simply give your bank the payment details and instructions, such as the payment date, amount, receiver’s bank details, etc. Once set up, a specified amount will be debited from the bank account on a fixed date every month. In this way, you will not need to make any manual payments.

If you’re wondering what is e-Mandate maximum amount transfer limit, keep in mind that it depends on many factors. The maximum amount you can transfer through e-Mandate depends on your bank policy, account limit, type of payment, etc. In addition, you may also have to pay nominal e-Mandate charges, as per your bank policy.

Understanding this process is as important as learning the e-Mandate meaning. It allows you to streamline and manage recurring payment payments such as for your OTT subscriptions, utility bill payments, credit card bills, Loan EMIs, etc.

Types of e-Mandates

Now that you know what is the e-Mandate registration process, learn about its variations.

Debit e-Mandate: This allows banks or merchants to deduct the mandated amount from your account, such as EMI payment, SIPs, insurance premiums, etc.
Credit e-Mandate: This type of e-Mandate allows businesses/individuals to receive the payment into their bank account via auto-credit, for example, fixed deposit monthly interest, insurance claim, loan amount, etc.

As you can see, both customers and businesses can enjoy the benefits of an e-Mandate. The top 3 industries which have adopted e-Mandate include:

Wealth Management
Insurance Industry
Lending Industry

Benefits of an e-Mandate

Here is a snapshot of the advantages of this facility.

Making and tracking payments is simpler, faster and more convenient
Meeting payment due dates is easy as long as you have a sufficient account balance
Making pan-India payments is hassle-fee
Avoiding late charges on recurring payments is easier

How to Apply for an e-Mandate

Here are the steps you can follow to register for e-Mandate:

Step 1: Log into your net banking account
Step 2: Select the e-Mandate option from the dashboard
Step 3: Enter your service provider details
Step 4: Enter the payment details, such as date, amount, etc
Step 5: Verify your account details
Step 6: Choose the payment option
Step 7: Enter the OTP to verify your e-Mandate

After OTP verification, your e-Mandate registration will be successful.

Note that some banks charge a minimal fee on mandate registration. Therefore, review the bank’s policy and e-Mandate charges before applying for this auto-debit facility.

By signing up for the e-Mandate facility, you can pay your loan EMIs on time and build your credit score with ease. If you are looking for an instant personal loan to meet your needs, consider the benefits of Fibe. With us, you can get an Instant Personal Loan of up to ₹5 lakhs in just 2 minutes with minimum documentation. Simply download our Personal Loan App or register on the website to get started.

FAQs on e-Mandate

What is an e-Mandate registration?

An e-Mandate registration authorises banks to auto-debit funds from your account to complete a recurring payment. It makes periodic payments simple and hassle-free.

What are the benefits of e-Mandate?

An e-Mandate allows you to meet your payment dues dates, save time and reduce hassle. It also has cost savings benefits as it saves you from paying late payment charges.