What is E-Mandate?

Posted on Thursday, January 23rd, 2025 | By IndusInd Bank

Do you have a recurring music or OTT subscription? Or you may be using autopay services for your regular SIPs. For such services to access money from your bank account, you must have set up an e-mandate.  

So, what is an e-mandate? It is a digital payment service that allows you to give a standing instruction to your bank to debit money from your account at a fixed interval for a specified purpose. E-mandates are powered and regulated by the National Payments Corporation of India (NPCI).  

Let’s explore what e-mandate is in detail, its registration process, benefits, and more. 

What is E-Mandate? 

• An e-mandate is a digital standing instruction or authorisation that a customer provides to their bank. It allows the bank to make automatic debits from their account for recurring payments at a set interval (weekly, monthly, quarterly, etc.) 

• With an e-mandate in place, you ensure that regular payments are deducted at the scheduled time without any effort from your side.  

• If you have a savings account, you can set up an e-mandate for various types of recurring payments. This can include insurance premiums, loan instalments, recurring deposit payments, mutual fund SIPs, and more.  

• To view your e-mandates connected to a particular account, you can visit your bank’s website or application. You can also visit a branch and make enquiries.  

• If you no longer need the digital mandate, you can also cancel it.  

Now that you have a clear idea of the e-mandate meaning, let’s see how you can register for it.  

How to Register for E-Mandate? 

Here’s how you can register for an e-mandate: 

Step 1: Choose the Service 

First, identify the service provider or payment for which you want to set up an e-mandate process.  

Step 2: Select the E-Mandate Option  

Once you have chosen the service, proceed to the payment gateway or banking platform. You will likely see an option to register for an e-mandate. Select this option to move forward. 

Step 3: Authenticate  

You will be redirected to your bank’s platform. Here, login using your net banking or mobile banking credentials. Enter your account details to confirm that the e-mandate is linked to this account.  

Step 4: Verify Through OTP or Biometric Authentication

Now, you will receive a One-Time Password (OTP) on your registered mobile number. Enter the OTP for verification. You can also opt for biometric authentication.  

Step 5: Review and Confirm

It is important to review the details of your e-mandate. Ensure that the details such as the amount to be deducted and the frequency of payments are correct. If everything looks good, confirm your registration. 

After you confirm, the e-mandate process will be activated. Your payments will be debited automatically from your account on the scheduled dates.  

Note that the process may vary depending on the service provider or bank. 

The e-mandate will only work if there is sufficient balance in your account. So, if you are linking an e-mandate with a zero-balance savings account, make sure your account has enough money at the time of the e-mandate deduction.  

Benefits of Registering for E-Mandate 

By registering for an e-mandate, you can enjoy the following benefits: 

1. Convenience:

An e-mandate removes the need to remember payment due dates. You no longer need to remember and manually initiate payments.  

2. On-time Payments: 

The e-mandate process ensures that payments are made on time. This prevents late fees, penalties, or service disruptions. E-mandates can be a boon when paying insurance premiums or loan instalments which often have strict due dates. 

3. Secure Payments: 

For an e-mandate to be set, you need to verify via an OTP or biometric authentication. This makes the process secure.  

4. No Missed Payments:  

The meaning of e-mandate implies that the bank will deduct the payment mandatorily until you cancel the instructions. This ensures that payments are always on time. Due to this, setting up e-mandates for loans is advisable. It can help maintain a good credit score.  

5. Better Budgeting: 

With an e-mandate, you can predict when and how much money will be deducted. This allows you to plan your monthly budget accordingly. 

Also Read: What is NACH in Banking? 

Conclusion 

An e-mandate makes it easy to handle recurring payments by automatically debiting money from your bank account. Whether you need to pay your gas bill or ensure ad-free streaming on your favourite music app, an e-mandate ensures the payments are made on time.  

For a hassle-free banking experience, consider setting up an e-mandate through IndusInd Bank’s digital banking services. If you do not have a Savings Account with IndusInd Bank, you can open one right away. The account opening process requires just 4 easy steps! Once opened, you can start enjoying competitive interest rates on your savings account and set up e-mandates seamlessly, amongst other benefits.  

Open a Savings Account with IndusInd Bank today!  

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.