Explained: What is e Mandate Registration

The RBI (Reserve bank of India) and the NPCI (National Payments Corporation of India) introduced this payment service known as e Mandate. It gives the liberty to the business to collect recurring payments from their customer’s bank accounts. e Mandate registration is the process by which businesses across India enroll customers for a service or a product where they pay a timely fee. It is entirely a digital process and it takes roughly a couple of days for the confirmation of the mandate. 

Reason for e Mandate registration

Recurring payments also known as a subscription are the automatic payments that you see everywhere when you take a subscription to any service. These are the types of payments where you allow merchants to debit an amount at a regular interval of time from their bank account. e Mandate is useful for recurring payments as it allows the merchants to collect the payments from the customers monthly or for the decided period. 

The most popular online services allow you the option of automatic payments. When you take the subscription of service providers such as Netflix, Amazon, Spotify, etc. you can opt for this registration so that the subscription money gets debited without interrupting the content.

Apart from this, financial services such as loan repayments where you get fined for missing the dates of loan repayment are the best reasons to go for e Mandate. Furthermore, utility bills are also popular reasons where you should not miss the deadlines. Automatic repayments help in paying the bills on time.

How is e Mandate Registration done?

There is a lot of stigma around the complexity of the process or any hidden charges. The whole process is introduced by the RBI and NPCI, so you do not need to worry about the authenticity of e Mandate. The process is fully digitalized and there is no need to report anywhere. Your mandate will get approved by the NPCI within 2-3 days. It is very easy and any Indian citizen who has a bank account can register for it. 

Following are the steps involved in the e Mandate Registration:

  • Input the details

You have to fill in the e Mandate information by logging into the fund house’s website, and they will check if the bank of the customer is registered with the NPCI so that e Mandate registration can be done. 

  • Mandate verification by the customer

The customer will be directed to the NPCI website to complete the process. Using the Net banking credentials, the customer can verify the mandate. 

  • Bank verification

First, the bank will verify the website of the fund house and also the service provider. Then your bank will verify the customer’s account number and will give an option to either accept or reject. 

  • Authentication

After you will accept the terms, you will be directed to the NPCI website for further details filling and authentication. 

  • View status

Once all the details are filled in, you can view your status of approval on the NPCI official website.

In this way, the e Mandate registration is done without any physical process. e Mandate is considered better than ECS because it takes less time and is done digitally. Click here to know more about the process in more detail. 

How is e Mandate registration useful?

e Mandate is very beneficial to both merchants and customers. The merchants can retain customers, as after the billing cycle they will be able to auto-debit from their customer accounts. It also reduces the administration cost as it is automatic. The customer data is also safe and the whole process is under the strict vigilance of the Indian Government. 

After completing the e Mandate registration, the customers get uninterrupted services from their merchants and they don’t have to worry about payment reminders. The undisturbed services are the most satisfying thing to a customer. Customers can also experience flexible options with simple options such as inclusions and termination.  

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