In order to successfully start the SIP, it is absolutely necessary to complete the mandate approval process.
On the Upstox MF platform, there are two kinds of mandates: online (E-Mandate) and offline (Physical Mandate).
Online/E-Mandate: Based on the user's bank, Upstox checks with NPCI whether the bank supports the online mandate authentication process led by NPCI. If the bank is supported, the user can avail online mandate service.
Offline/Physical Mandate: In case your bank does not support online mandate then Upstox will facilitate you with an Offline/Physical 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 platform.
To process a mandate, follow these steps:
A. Online /E-Mandate
Step 1: Log in to the Upstox MF Platform using User ID and Password.
Step 2: Click on the Portfolio.
Step 3: From the SIP tab click on the scheme name.
Step 4: Click on the 'Approve E-Mandate' button below
Step 5: Next you will see the Authentication page from BSE Star MF to continue with the email verification code. After SIP Registration, you can also check the email you receive from BSE StarMF for E-Mandate Authentication. This will be with a subject line ‘BSE StarMF E-Mandate Authentication Link’
Step 6: You need to proceed by providing the Verification code sent from BSE StarMF on your registered email..
Step 7: Upon clicking on the Continue button, you will receive the security code
Step 8: After submitting the security code, you will see the below Mandate page. From here, choose the verification mode: Net Banking or Debit Card. After clicking on T&C, click on submit.
Based on the mode selected by you from the (above screenshot), you will be redirected to your respective banking portal where you need to authorize the mandate by either typing in the transaction verification code or an OTP
Note: E- Mandate link needs to be approved within 5 days or else it gets expired.
B. Offline/Physical Mandate
Step 1: Take a printout of the mandate form (Note: If you do not have the mandate form, you can visit the MF page and click on Download Form)
Step 2: Sign and mention your name as per the bank records
Step 3: Scan the signed mandate form.
Step 4: Login to our MF platform https://upstox.com/mutual-funds/under the MF portfolio there is an SIP tab where you can see set-up Auto-debit tag. Click on that and upload your Mandate.
Note: Only JPEG file with less than 1mb size is allowed to upload. Also you must not edit any other content that is mentioned in the mandate form.
Bank mandate Verification TAT:
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 25 days for the mandate to be approved. Once the mandate is approved, an auto-debit structure will be set up with your bank.
Depending on the bank that you want to register with, it can take around T+7 days incase of online mandate and once the authentication process is completed by you, your respective bank will send the status of your mandate to BSE and the same is reflected on the Upstox Mutual Fund 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.