For the clients, to automate their recurring payments to SIP will have to complete the process of e-mandate. For example, you've created a SIP for ₹10,000 in a mutual fund. Now either you can do this manually each month or automate this process by allowing your stock broker to auto-debit ₹10,000 via bank a/c, this process of auto-debit from a bank a/c is called e-mandate. This paperless service was jointly launched by RBI and the National Payments Corporation of India (NPCI).
Following are the major benefits of e-Mandate
A- Just 3-day approvals
B - Completely paperless process. No need to sign and send a hard copy to a financial institution
C - 3-step process. Enter Amount. Verify email. Provide an eSignature.
D - A highly secured process with Aadhaar verification
Note: the maximum amount of recurring deposits via e-mandate can be for ₹1,00,000
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