We all are living a fast-paced life, multitasking, and juggling between the daily demands of our work and family routines. With so much going on, it is inevitable that at times we miss some important commitments, including the payment of monthly EMIs on loans or utility bills, etc.
In the era of technology we get reminders or digital alerts for practically everything; be it birthdays, FD renewals, etc. As far as financial commitments go, all we want to see is ‘Payment Successful’ flashing on our screens at the touch of our fingertips. Gone are the days where EMIs and bill payments were manually done through cheques or by standing in long queues. Today majorly because of factors like lack of time, technology has become man’s best friend and the hassles of manual intervention in fulfilling these basic obligations are eliminated.
For faster and hassle-free EMI and bill payments, RBI along with National Payments Corporation of India (NPCI) have initiated a new payment service called E-Mandates.
What is an E-mandate service?
E-Mandates is a payment services through which you can easily automate your monthly recurring payments online; it is an alternate channel to the paper-based mandates. Through the NPCI’s e-mandate platform, users can now give standing instructions for payments like bills, fees, premiums, loan EMI’s etc. to Banks, NBFCs, utility companies, educational institutions etc.
E-Mandates can be directly set up through a net-banking transaction from the merchant websites. The objective is to allow you to setup auto debit instructions from your bank accounts with one-time digital authentication. The payer will not have to worry about making monthly payments as once the bank or the merchant is authorized, payments will be automated on the predetermined dates. One can easily setup e-mandates for one-time, daily, weekly, fortnightly, monthly, quarterly, half yearly and yearly payments of EMIs and bills.
In terms of loan EMI payments, you can register EMI e-mandate with debit card and net-banking details and your EMI will be deducted automatically every month. E-mandates can be set upto Rs.2000 without a UPI Pin. If the amount exceeds Rs.2000, a UPI Pin becomes mandatory.
Benefits of E -mandate facility:
Processing time – 2 days
E-Mandate Limits – There is no limit on setting of E-mandates for an account