What is e - mandate ?
E mandate is a system of payment in banking that makes paying recurring bills of fixed or varying amounts seamless.
History and significance of e mandate
Yes, the term e mandate may be quite confusing to many and probably you too. So let us understand it's origin and why a system like this is even needed.
RBI (Reserved Bank of India) introduced e mandate of in India in 2018. It's main objective was to make payment of recurring bills paperless and fast.
Any corporate industry using e mandate must abide by the e mandate policy of RBI defined in their preamble.
So why is e mandate needed ?
Ok so, suppose you wish to purchase a product or service and because the pricing is very high, you likely won't be able to pay it at once. So most likely you would opt for EMI (Equal Monthly Installment) which is natural. What e mandate does is basically it makes payment of EMI very easy and paperless.
In earlier times, the process of availing and full-filling EMI involved many paper works and in case of late payment if EMI the customer had to pay extra fines too (if the company/corporate charged so), but now e mandate has made it automated, fully online process where the required amount is automatically debited to the corporate or company from which you are taking the service.
How do I stop the e mandate ?
Yes, you are always in control regarding the e-mandate initiated initiated your bank account. In India, for example the government bank SBI (State Bank of India) offeres a simple way to do this. They provide a way in which you can close all the e-mandate in your bank account at once.
Are you a customer of SBI ?
If you are then here is how to close all of your e-mandates in your bank account.
1. Click here to visit the Official SBI website for Debit and Credit cards.
2. There you will see various forms for various purposes that can be downloaded.
3. Download the one which says auto debit deactivation letter.
4. Fill up the form and send it to the following address.
You may type in details like the account number and name in the form but the signature of the account holder must be written by hand.
Hope you found the information here of help and now know much about e-mandate.
Remember that e-mandate is also sometimes called Recurring Payment or Standing instruction , though it's rare to call so.
Thanks for reading.
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