- Business

E-Mandate Guide: Introduction And Its Process

With the introduction of the E-Mandate in India in the year 2018, the entire recurring payment collection method has gone through some major changes. The E-Mandate process has made the recurring money collection process very easy and simple for the lenders and in the same way, they save on operational costs. 

According to the latest update of the Reserve Bank of India on June 8, 2022, the limit on E-Mandate has been increased to Rs. 15000 to Rs. 5000 on every transaction, which simply means that a customer or end-user won’t have to put an OTP for any recurring payment under Rs. 15000. 

In this article, we will discuss what E-Mandate is and multiple aspects related to the process of E-Mandate registration. To learn more about the E-mandate registration and integration process you can visit https://blog.cashfree.com/e-mandate/.

E-mandate has simplified the recurring payment process.

What is an E-Mandate?

A mandate usually refers to a document or standing instruction that any individual provides to their banks to authorize them to deduct a specific amount of money from their bank account through an automatic process.

E-Mandate is the electronic form of mandate used by different companies and businesses which can easily and efficiently manage various kinds of recurring payments. With the help of the E-Mandate process, you will be able to terminate the inconveniences associated with recurring payments, send reminders to the customers and avoid asking for the penalties related to the late payments, creating a win-win situation for both parties.

Although companies and businesses have been cumulating recurring payments such as insurance premiums and SIPs for a significantly long period, the whole was approved after filing a physical form with a final signature of the end user. With the help of E-Mandate, the whole process has become extremely easy, efficient, and cost-effective.

What is a recurring payment?

A recurring payment or subscription is a pre-programmed payment where a customer or end-user allows the service provider (be it a company or business) to deduct a certain amount of money directly from their bank account in a periodic way. The recurring payment system is used multiple business models and some of them are discussed below:

  • OTT or Over-the-top media services: Right now, online streaming services have changed the way we entertain ourselves. Companies like Amazon, Netflix, and Spotify have changed the way we watch movies and listen to music. These companies have online subscription plans that usually get renewed after a certain amount of time. Moreover, different news websites and magazines also utilize the recurring payment model.
  • Retail and e-commerce: Different e-commerce, food delivery, and grocery delivery platforms also use the recurring payment system to provide their exclusive services.
  • SaaS: Businesses providing SaaS services also rely on recurring payments every month which can also increase depending on the usage capacity.
  • Utility: Payments related to gym membership, phone bills, electric bills, etc. come under the utility tag. We are already aware that these types of bills have a recurring nature.
  • Financial services: Multiple financial services providing companies, especially the ones who focus on investments, insurance, loan, etc. utilize the recurring payment service.

The registration process of E-Mandate

With the help of the E-Mandate registration process, you will be eligible to recruit customers for your company or business where the end user will pay a certain amount of money or subscription fee for using your products or services. Moreover, this process will also ensure that you are timely paid for your services.

Let us look at how E-Mandate registration works:

  1. The process of E-Mandate with the help of Systematic Investment Planning is digital and the approval process will not take more than a few days.
  2. First, you will need to log into the website of the fund house and fill out the e-mandate form. In the form, you will need to write down the address or branch of the bank, your debit intervals, account number, IFSC code, etc.
  3. Now the fund house will check if the customer’s or end user’s bank has been registered by the National Payments Corporation of India for the creation of the E-Mandate.
  4. After that, the customer will be diverted to the website of NPCI and from there to the customer bank’s website for authentication.
  5. Using their net banking credentials, the customer or end user will authenticate the E-Mandate registration.
  6. The bank will then evaluate the customer’s account number which the customer has provided while filling the E-Mandate form on the fund house’s official website.
  7. The bank will showcase the E-Mandate registration requested by the end user and it will also provide two options to choose from: accept or reject.
  8. After you are accepted, you will be automatically redirected to the official website of National Payments Corporations of India and from there back to the website of the fund house. On this page, you will be able to see the status of your E-Mandate registration.
  9. The E-Mandate registration will be confirmed at the end of the day.

This is the complete process of E-Mandate registration and you do not need to be physically present to complete the entire process.

If you have a company or business that follows the recurring payment model then you will know the importance of E-Mandate registration. The best part about this process is that you can fill out the form and complete the entire process very efficiently and that too without any hassle.


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