What is a ‘bank mandate’ and why it is required

 

A bank mandate is an authorisation provided by you to debit your linked bank account for both SIP and One-Time mutual fund investments.

 

One single bank mandate, once approved, can be used to make investments across all schemes of all AMCs available on nivesh.com

 

Key points to note:

  1. Once approved, future SIP installments will be auto-debited from your bank account
  2. The amount in the bank mandate is the maximum permissible amount that can be debited from your account on a single day.
  3. The amount debited from your bank account will be the amount of SIP installment and not the amount specified in the bank the mandate
  4. A bank mandate can be used for doing one-time purchases as well as long as the purchase amount falls within the mandate amount limit.
 

Nivesh.com supports 3 different kinds of bank mandates:

  • E-Mandate
  • Physical Bank Mandate
  • Net Banking Mandate
 

E-Mandate

 

It's the most efficient way of creating a bank mandate and is completely paperless.

 

This mandate is Aadhaar-based and requires the following:

  • Your mobile number and email ID to be linked to your Aadhaar number
  • Your Aadhaar number to be registered against your bank account

How to create an E-Mandate on Nivesh.com

  • Create a fresh E-Mandate
  • Receive a link on your email ID registered with Nivesh.com, informing on e-signing of the mandate
  • Click the link, fill your Aadhaar number on the displayed form and submit
  • OTP will be sent to your mobile number and email ID linked to your Aadhaar
  • Fill-in the OTP and submit for processing
  • The E-Mandate gets approved within 3-4 days
  • You will receive SMS alert informing you of the status of registration.
 

Physical Bank Mandate

 

This bank mandate requires your signatures on printed mandate form:.

 

In this case,

  • On mandate registration, a filled-in electronic mandate form is generated from our system and emailed to you and your sub-broker.
  • This mandate form needs to be printed, signed by you and sent to us directly / through your sub-broker
  • The signed mandate form is forwarded to the bank for further processing.
  • The overall approval process takes around 20-30 working days.
 

Net Banking Mandate

 

This mandate is setup through the Net Banking Account of the investor.

 

The process is as follows:

  • On mandate registration, a UMRN will be displayed on the mandate creation screen
  • Copy this UMRN to clipboard using the option provided on screen.
  • Login to your Net Banking account and go to the Biller section
  • Choose BSE Ltd as biller and fill-in the UMRN in the URN field
  • Choose Debit from your bank account (not from debit card or credit card)
  • Choose no limit for the amount as the amount is limited by the I-Mandate
  • Complete the process as instructed by your bank
  • The overall approval process takes around a week
 

Please note that a registered Net Banking Mandate works only for the SIPs registered against the specific mandate. It cannot be used for additional one-time investments. However, since you have internet banking, you can always pay for your future one-time purchases using your internet banking account.