{"id":7998,"date":"2024-03-08T09:00:00","date_gmt":"2024-03-08T09:00:00","guid":{"rendered":"https:\/\/www.indifi.com\/blog\/?p=7998"},"modified":"2024-05-15T10:30:02","modified_gmt":"2024-05-15T10:30:02","slug":"understanding-e-mandate-a-simple-guide","status":"publish","type":"post","link":"https:\/\/www.indifi.com\/blog\/understanding-e-mandate-a-simple-guide\/","title":{"rendered":"What Is E-Mandate &#8211; Meaning, Benefits, Registration &#038; Eligibility"},"content":{"rendered":"<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/03\/E-Mandate-500x281.jpg\" alt=\"What-is-E-mandate\" class=\"wp-image-8001\" width=\"824\" height=\"463\" srcset=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/03\/E-Mandate-500x281.jpg 500w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/03\/E-Mandate-768x432.jpg 768w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/03\/E-Mandate-1536x864.jpg 1536w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/03\/E-Mandate-2048x1152.jpg 2048w\" sizes=\"(max-width: 824px) 100vw, 824px\" \/><\/figure><\/div>\n\n\n<p>An E-Mandate (electronic mandate) allows individuals or organisations to authorise recurring payments to be carried out electronically. This does not involve the need for physical paperwork or signatures.&nbsp;<\/p>\n\n\n\n<p>In simple terms, e-mandates have become a crucial component as it helps streamline the process of setting and managing recurring payments, reducing administrative overhead, enhancing security, among other things.&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_67_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.indifi.com\/blog\/understanding-e-mandate-a-simple-guide\/#What_is_E-Mandate\" title=\"What is E-Mandate?\">What is E-Mandate?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.indifi.com\/blog\/understanding-e-mandate-a-simple-guide\/#How_Does_E-mandate_Work\" title=\"How Does E-mandate Work?&nbsp;\">How Does E-mandate Work?&nbsp;<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.indifi.com\/blog\/understanding-e-mandate-a-simple-guide\/#1_Initiation\" title=\"1) Initiation\">1) Initiation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.indifi.com\/blog\/understanding-e-mandate-a-simple-guide\/#2_Authentication_Process\" title=\"2) Authentication Process\">2) Authentication Process<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.indifi.com\/blog\/understanding-e-mandate-a-simple-guide\/#3_Agreement\" title=\"3) Agreement\">3) Agreement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.indifi.com\/blog\/understanding-e-mandate-a-simple-guide\/#4_Approval\" title=\"4) Approval\">4) Approval<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.indifi.com\/blog\/understanding-e-mandate-a-simple-guide\/#5_Activation\" title=\"5) Activation\">5) Activation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.indifi.com\/blog\/understanding-e-mandate-a-simple-guide\/#6_Notification\" title=\"6) Notification\">6) Notification<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.indifi.com\/blog\/understanding-e-mandate-a-simple-guide\/#7_Modification_and_Cancellation_of_Mandate\" title=\"7) Modification and Cancellation of Mandate\">7) Modification and Cancellation of Mandate<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.indifi.com\/blog\/understanding-e-mandate-a-simple-guide\/#What_Are_The_Various_Benefits_of_E-mandate\" title=\"What Are The Various Benefits of E-mandate?\">What Are The Various Benefits of E-mandate?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.indifi.com\/blog\/understanding-e-mandate-a-simple-guide\/#Places_Where_You_Can_ActivateUse_E-mandate\" title=\"Places Where You Can Activate\/Use E-mandate\">Places Where You Can Activate\/Use E-mandate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.indifi.com\/blog\/understanding-e-mandate-a-simple-guide\/#A_Step_By_Step_Guide_For_E-mandate_Registration\" title=\"A Step By Step Guide For E-mandate Registration\">A Step By Step Guide For E-mandate Registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.indifi.com\/blog\/understanding-e-mandate-a-simple-guide\/#FAQs\" title=\"FAQs\">FAQs<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.indifi.com\/blog\/understanding-e-mandate-a-simple-guide\/#What_is_the_maximum_limit_for_e-mandate_through_one_account\" title=\"What is the maximum limit for e-mandate through one account?\">What is the maximum limit for e-mandate through one account?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.indifi.com\/blog\/understanding-e-mandate-a-simple-guide\/#Are_there_any_charges_for_e-mandates\" title=\"Are there any charges for e-mandates?\">Are there any charges for e-mandates?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.indifi.com\/blog\/understanding-e-mandate-a-simple-guide\/#How_much_time_does_it_take_to_process_e-mandate_approval\" title=\"How much time does it take to process e-mandate approval?&nbsp;\">How much time does it take to process e-mandate approval?&nbsp;<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_E-Mandate\"><\/span><strong>What is E-Mandate?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>E-mandate or digital mandate is a digital payment service that was introduced by RBI (Reserve Bank of India) and<strong> National Payments Corporation of India in 2018<\/strong>. <\/p>\n\n\n\n<p>Also Read:- <a href=\"https:\/\/www.indifi.com\/blog\/repo-rate-impacts-on-emi\/\">What Is Repo Rate &amp; Impacts Of Increased Repo Rates by RBI On EMI<\/a><\/p>\n\n\n\n<p>The sole purpose of this digital authorization system is to simplify the banking process between the customer and the service provider. Also taking loans from <a href=\"https:\/\/www.indifi.com\/blog\/how-digital-lending-platforms-are-changing-the-ecosystem-for-msmes\/\">Digital Lending Platforms&nbsp;<\/a>is a bit easier now days.<\/p>\n\n\n\n<p>For instance, the focus on collecting recurring payments like insurance premiums seamlessly without any human intervention makes the entire process convenient and easy.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.indifi.com\/business-loan\"><img decoding=\"async\" loading=\"lazy\" width=\"500\" height=\"91\" src=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/01\/Instant-Business-Loan-in-3-Days-500x91.jpg\" alt=\"Instant Business loans for Startups\" class=\"wp-image-6695\" srcset=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/01\/Instant-Business-Loan-in-3-Days-500x91.jpg 500w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/01\/Instant-Business-Loan-in-3-Days.jpg 716w\" sizes=\"(max-width: 500px) 100vw, 500px\" \/><\/a><\/figure><\/div>\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Does_E-mandate_Work\"><\/span>How Does E-mandate Work?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>An e-mandate process revolutionizes the traditional way of making payments. Instead of following the process manually, digital technology is employed to automatically take care of recurring transactions. Here\u2019s how the complete e-mandate registration process looks like:<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Initiation\"><\/span>1) Initiation<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>The customer starts the process by picking a service such as <a href=\"https:\/\/www.indifi.com\/blog\/what-is-loan-repayment-different-options-types\/\">loan repayment<\/a> or insurance premium, to name a few. These are the services which they want to set up recurring payments. They then fill an e-mandate form on the app, website or merchant store.&nbsp;<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Authentication_Process\"><\/span>2) Authentication Process<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>After selecting the service, the customer authenticates the mandate. This is commonly done using multi factor authentication methods like OTPs being sent to registered email addresses or mobile numbers. After successful authentication, the mandate is considered verified.&nbsp;<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Agreement\"><\/span>3) Agreement<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>Once verified, the customer agrees to the terms and conditions which includes the amount, frequency and the duration for recurring payments.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Approval\"><\/span>4) Approval<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>The bank then reviews the mandate to check whether it meets all the said criteria for approval.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_Activation\"><\/span>5) Activation<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>Upon approval, the mandate becomes active and the specified amounts are debited automatically from the customers\u2019 account at regular intervals.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_Notification\"><\/span>6) Notification<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>Customers receive notification before and after each transaction. This is an important process as it helps keep customers informed.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"7_Modification_and_Cancellation_of_Mandate\"><\/span>7) Modification and Cancellation of Mandate<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>Customers have the flexibility to modify or even cancel the mandate at any given time. However, certain conditions may apply for the same.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Are_The_Various_Benefits_of_E-mandate\"><\/span>What Are The Various Benefits of E-mandate?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Some of the key benefits of using e-mandate online services are:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>1) <strong>Ease of use: <\/strong>The first and foremost benefit of e-mandate is its ease of use. This results in a timely transaction as well as saves from the hassle of logging in to the business website and paying the due amount.<\/td><\/tr><tr><td>2) <strong>Timely Payments: <\/strong>E-mandate contributes to timely payment, particularly by reducing manual interventions.&nbsp;<\/td><\/tr><tr><td>3) <strong>Cost savings:<\/strong> Administration cost is lowered as compared to paper based mandates, thus making e-mandate a cost saving method.<\/td><\/tr><tr><td>4) <strong>Security:<\/strong> E-mandate offers enhanced protection with security features like digital signatures. This helps against fraud and unauthorized access.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Also Read:- <a href=\"https:\/\/www.indifi.com\/blog\/10-tips-for-avoiding-business-loan-scams\/\">10 Tips for Avoiding Business Loan Scams<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Places_Where_You_Can_ActivateUse_E-mandate\"><\/span>Places Where You Can Activate\/Use E-mandate<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>E-mandate is used wherever recurring payments are involved. Here are some common places where you can use the same:<\/p>\n\n\n\n<ul>\n<li>Insurance Premiums<\/li>\n\n\n\n<li>Subscription Services<\/li>\n\n\n\n<li>Loan Repayments<\/li>\n\n\n\n<li>Utility Bills<\/li>\n\n\n\n<li>Rent Payments<\/li>\n\n\n\n<li>Education Fees<\/li>\n<\/ul>\n\n\n\n<p>To conclude, e-mandates have made a positive reform for businesses and individuals looking for efficient and secure digital payment solutions. In the past years, numerous businesses have adopted the e-mandate and witness advantages including cost savings, better security, timely payments, to name a few.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A_Step_By_Step_Guide_For_E-mandate_Registration\"><\/span>A Step By Step Guide For E-mandate Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Follow these steps to register E-Mandate<\/p>\n\n\n\n<ul>\n<li><strong>Access the Platform:<\/strong> Log in to the website or mobile application of the service provider offering e-mandate registration.<\/li>\n\n\n\n<li><strong>Navigate to Mandate Registration:<\/strong> Look for the option related to mandate registration or e-mandates within your account dashboard or menu.<\/li>\n\n\n\n<li><strong>Provide Details:<\/strong> Fill in the required details accurately. This typically includes your bank account information, such as account number, branch name, and IFSC code.<\/li>\n\n\n\n<li><strong>Select Mandate Type:<\/strong> Choose the type of mandate you wish to set up. This could include recurring payments for utilities, subscriptions, loans, or any other authorized payments.<\/li>\n\n\n\n<li><strong>Enter Mandate Details:<\/strong> Specify the details of the mandate, including the frequency of payments, the amount to be debited, and the duration of the mandate (start and end dates).<\/li>\n\n\n\n<li><strong>Authenticate:<\/strong> Authenticate the registration process. This may involve OTP (One-Time Password) verification sent to your registered mobile number or email address.<\/li>\n\n\n\n<li><strong>Confirm Mandate:<\/strong> Review the entered information to ensure accuracy and confirm the mandate registration.<\/li>\n\n\n\n<li><strong>Wait for Approval:<\/strong> Once submitted, the mandate registration request will be processed by the service provider or bank. This may take a short time, depending on the processing times of the respective institution.<\/li>\n\n\n\n<li><strong>Receive Confirmation:<\/strong> Upon approval, you will receive confirmation of the successfully registered e-mandate. This may be via email, SMS, or within your account dashboard.<\/li>\n\n\n\n<li><strong>Manage Mandates:<\/strong> After registration, you can typically manage your mandates, including modifying or cancelling them, through the same platform or application.<\/li>\n<\/ul>\n\n\n\n<p>Remember to keep your login credentials secure and to regularly monitor your account for entire E- mandate registration process. Here few <a href=\"https:\/\/www.indifi.com\/blog\/10-tips-for-avoiding-business-loan-scams\/\">tips to avoid scams in business loan<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_maximum_limit_for_e-mandate_through_one_account\"><\/span>What is the maximum limit for e-mandate through one account?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>While there is no limit on the number of e-mandates set up via one account, it is recommended to check with the concerned provider and review the related terms and conditions.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Are_there_any_charges_for_e-mandates\"><\/span>Are there any charges for e-mandates?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The charges associated with e-mandate vary based on the service provider, the types of transactions etc. For instance, Zerodha doesn&#8217;t charge for E-mandate registrations at the moment.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_much_time_does_it_take_to_process_e-mandate_approval\"><\/span>How much time does it take to process e-mandate approval?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Generally, the turnaround time for e-mandate approval process is 5 to 7 days.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>An E-Mandate (electronic mandate) allows individuals or organisations to authorise recurring payments to be carried out electronically. This does not involve the need for physical paperwork or signatures.&nbsp; In simple terms, e-mandates have become a crucial component as it helps streamline the process of setting and managing recurring payments, reducing administrative overhead, enhancing security, among [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[141],"tags":[],"_links":{"self":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/7998"}],"collection":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/comments?post=7998"}],"version-history":[{"count":16,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/7998\/revisions"}],"predecessor-version":[{"id":9723,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/7998\/revisions\/9723"}],"wp:attachment":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media?parent=7998"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/categories?post=7998"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/tags?post=7998"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}