It is absolutely compulsory to complete the mandate authentication/approval process in order to successfully start the SIP.
There are 2 kinds of mandate at the Upstox MF platform knowns as Online (E-Mandate) and Offline (X-Mandate).
- Online/E-Mandate: Based on the user's bank Upstox MF check with NPCI whether the bank supports the online mandate authentication process led by NPCI. (List of supported banks for Online/E-Mandate).
- Offline/X-Mandate: In case your bank does not support online mandate then Upstox MF will facilitate you with Offline/X-Mandate form which will be in pdf format.
It is basically a form that you sign which gives the exchange the permission to deduct the SIP amount at regular intervals to pay toward the SIPs that you have invested in via the Upstox MF platform.
The process to Authenticate/Approval the Mandate.
- The user has to take a printout of the mandate form.
- The user must sign and mention his/her name as per the bank records.
- Scan the signed mandate form.
- Email the scanned image/file at firstname.lastname@example.org.
Note: The user should not be editing any other content that is mentioned in the mandate form.
- Post login to Upstox MF Platform using UCC/Client ID and Password.
- Click on the Portfolio.
- From the SIP tab click on the scheme name.
- Click on the button placed at the bottom with the name "Approve E Mandate" and follow the step thereafter.
- Time to process mandate.
The signed bank mandate will be verified by the Upstox team and sent to BSE who will then send it to your respective bank for registration. Depending on the bank that you want to register with, it can take about 20-25 days for the mandate to be approved. Once the mandate is approved, an auto-debit structure will be set up with your bank.
Once the authentication process is completed by you, then within 7 working days your respective bank send the status of your mandate to BSE and the same is reflected on the Upstox MF Platform
Cost of registering a bank mandate
Upstox does not charge you anything for registering any kind of mandate. However, with the recent circular from NPCI, your bank might ask you for a one-time fee in order to register the mandate. The charges differ from bank to bank. The Upstox team urges you to check the mandate charges with your bank.