July 16, 2025
4 mins read
A mandate amount is the maximum limit set by an account holder for automatic or recurring payments. It authorizes financial institutions or payment service providers to deduct a specified amount from the account regularly without requiring further approval.
This system ensures that payments for services such as loan EMIs, utility bills, insurance premiums, and subscriptions are made on time, reducing the risk of missed deadlines and late fees.
The mandate amount also protects account holders by preventing deductions beyond the approved limit, giving them financial security and control.
It is an essential feature of digital banking, offering convenience and peace of mind. Users can modify or cancel the mandate at any time based on their changing financial needs or agreements with service providers.
E-mandate is a digital payment method that makes it easy to make periodic payments without having to do anything for each one.
The Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) came up with it to make it easier to make recurring payments. There are usually a few steps in the process:
You agree to frequent online deductions, which you usually do by filling out a simple form that is linked to the service provider.
You prove that you are who you say you are by utilising a debit card, online banking, and an OTP.
Your request goes through NPCI's NACH system, which manages all of the country's recurring payments.
Before you may use the mandate, your bank must review and approve it.
You can automatically take out up to ₹1 lakh. If you want to take out more than that, you need to give separate permission.
You get a warning 24 hours before money is taken out of your account, so you have time to stop or cancel the transaction.
Setting a limit on Auto Pay or criteria is like putting up a financial guardrail. It's the maximum money a business can take out of an account in one go.
The limit is the same as the payment for certain quantities, like EMIs. You might want to keep it a little higher than you thought for things like utilities that change. That way, payments go through without any issues.
You won't miss a payment if a bill ever goes over the amount you specified. Your bank can put it on hold or ask you to approve it again.
You can set up automatic payments of up to ₹1 lakh with UPI AutoPay. After the initial payment, you won't have to do any additional checks. That's the usual limit.
You will need to confirm each debit separately if your recurring payment is more than ₹1 lakh. It's a way to stop big deductions from happening without permission.
Banks don't always have to follow the RBI's restriction of ₹1 lakh. So, before you employ automation, you should check with your bank to see what their exact guidelines are for mandates.
Additionally Read: How to Find IPO Mandate on GPay and Phonepe
Mandate amounts make it easier to pay on time, but they also limit how much you can pay. You decide how much money you want to spend on bills or investments that are paid automatically.
It's automated, but someone is always watching it, so it's both efficient and safe. You like how easy it is to pay, and the restrictions help you keep track of your money.
No result found
If a scheduled payment exceeds the pre-set mandate amount, the transaction may be declined by your bank or require additional authentication (e.g., an OTP) before it can proceed. It will not be automatically debited if it surpasses the authorised maximum limit.
Yes, you can generally change your mandate amount. The process typically involves submitting a request through your bank's online portal, mobile app, or by contacting the service provider. The change will usually require re-authentication to update the mandate details.
An e-mandate can have a validity period depending on its purpose. For many recurring payments, e-mandates can remain valid for a maximum of 25 years. However, specific mandates might be set for shorter durations or until a certain number of payments are completed.
While many banks do not charge a fee for setting up an e-mandate for common services, some financial institutions or specific service providers might levy a nominal charge for the registration or processing of an e-mandate. It is advisable to check with your bank.
Yes, you can cancel an e-mandate at any time. This can typically be done through your bank's online banking platform, mobile app, or by contacting the service provider directly. Cancelling a mandate stops future automatic deductions.
The maximum limit for an e-mandate transaction in India for automated recurring payments without repeated authentication is ₹1 lakh. For transactions exceeding this amount, additional factor authentication (AFA) is typically required for each individual debit.
To update bank details linked to an e-mandate, you generally need to cancel the existing mandate and set up a new one with the updated bank account information. This process usually involves re-authorising the new mandate with your chosen bank details.
Yes, if an e-mandate transaction fails, you will generally receive a notification from your bank or the service provider. This notification can be via SMS, email, or through your banking app, informing you about the unsuccessful debit.
You can usually check the status of your active e-mandates through your bank's net banking portal or mobile banking application. Many banks provide a section where you can view and manage your registered mandates and their current status.
If there are insufficient funds in your account during an e-mandate deduction, the transaction will typically fail. Your bank may levy a penalty or a "return charge" for the failed debit, and the service provider might also impose late fees.
Disclaimer :
The information on this website is provided on "AS IS" basis. Bajaj Broking (BFSL) does not warrant the accuracy of the information given herein, either expressly or impliedly, for any particular purpose and expressly disclaims any warranties of merchantability or suitability for any particular purpose. While BFSL strives to ensure accuracy, it does not guarantee the completeness, reliability, or timeliness of the information. Users are advised to independently verify details and stay updated with any changes.
The information provided on this website is for general informational purposes only and is subject to change without prior notice. BFSL shall not be responsible for any consequences arising from reliance on the information provided herein and shall not be held responsible for all or any actions that may subsequently result in any loss, damage and or liability. Interest rates, fees, and charges etc., are revised from time to time, for the latest details please refer to our Pricing page.
Neither the information, nor any opinion contained in this website constitutes a solicitation or offer by BFSL or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service.
BFSL is acting as distributor for non-broking products/ services such as IPO, Mutual Fund, Insurance, PMS, and NPS. These are not Exchange Traded Products. For more details on risk factors, terms and conditions please read the sales brochure carefully before investing.
Investments in the securities market are subject to market risk, read all related documents carefully before investing. This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
For more disclaimer, check here : https://www.bajajbroking.in/disclaimer
Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading
Open Your Free Demat Account
Enjoy low brokerage on delivery trades
|
Please Enter Mobile Number
Open Your Free Demat Account
Enjoy low brokerage on delivery trades
|
