FAQs on Mandate

1.What is NACH

The National Payments Corporation of India (NPCI) offers to banks, financial institutions, Corporates and Government/s a service termed as “National Automated Clearing House (NACH)” which includes both Debit and Credit. It shall be referred to as NACH. NACH (Debit) & NACH (Credit) aims at facilitating interbank high volume, low value debit/credit transactions, which are repetitive in nature, electronically using the NPCI service.

2.What is a Mandate

Mandate is a standing instruction to a bank to debit client’s account on a periodic basis for a periodic transaction like repayment of Loans, investments etc.

  1. 3. How to set up a Mandate
  1. Offline Mandate – In this case, a physical mandate request form needs to be submitted at NPCI. This process usually takes around 4-5 days (including the transit time).
  2. E-mandate (Online Mandate) – In this case, the entire mandate registration process happens digitally with customer’s Simplified Aadhaar E-Mandate authentication and so it is completely paperless.
  1. 3. What is the difference between e-mandate and standing instruction?

A mandate is a standing instruction given to the bank where a customer holds their account to debit a fixed amount to another bank account automatically. eMandates are electronic versions of mandates, wherein customers can register, edit, and delete mandates entirely online.

  1. Are there any charges for an e-mandate?

NO, E-Mandate facility is provided Free of Cost to the Customers.

  1. What can be the maximum duration for which a mandate can be issued?

A customer can issue a mandate for a maximum duration of 40 years. 

  1. What are the features of a Mandate
  • Facility for Mandate registration, modification, deletion
  • Customers will get a pre-debit (SMS/Email) notification 24 hours prior to the debit.
  • Customers can opt out of the transaction or the mandate via link provided in the pre-debit notification.
  • facility include physical request, online request including request through registered email of the customer. On receipt of withdrawal instructions from its customer, it is obligatory on the part of the Bank not to include the transaction pertaining to such customers.
  1. What is the Minimum and Maximum limit of mandate?

Minimum amount for Mandate is Rs 5000 and Maximum is Rs 1cr. This amount can be edited and increased as well. However, it cannot be reduced. The maximum limit of Mandate Amount depends on customer’s Bank. Ideally customers are suggested to keep a higher Mandate amount so that with it any amount of transactions can be placed easily, without the need for registering a new mandate/increasing mandate limit.

  1. Can I register any new bank for E-mandate or for only the existing bank accounts? 

There is no restriction in number of bank accounts to be registered for mandate. You can register your existing bank as well as new bank accounts for E-Mandate facility.

  1. What would happen when there is name mismatch 

In-case of name mismatch customer cannot proceed with E-Mandate as per PMLA guidelines. For such cases customers have to follow Offline Mandate. 

  1. Is it possible to delete/cancel/edit the mandate?

Yes, you can cancel the mandate anytime on a real time basis online

  1. Can the customer approach the user institution for withdrawal of mandate issued?

Yes, all the user institutions provide a facility that shall include physical request, online request including request through registered email of the customer. on receipt of withdrawal instructions from its customer, it is obligatory on the part of the User institution not to include the transaction pertaining to such customers.

  1. How can I check my e mandate?

The account holder can check their e mandate / mandate by logging in to the bank’s internet banking portal and selecting the E Mandate / Mandate option. They can view the details of their e-mandate / mandate, including the receiver’s name, account number, and the frequency of the transaction.

Translate »