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What is a Mandate?

Key Takeaways

  • The Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) jointly introduced the E-mandate.
  • You can authenticate E-mandates digitally using net banking or debit cards.
  • E-mandates are quicker, safer, and more user-friendly than ECS or paper-based mandates.
27 May 2025 by Team FinFIRST
Automatic SIP Through Savings Account
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Systematic Investment Plans (SIPs) are key to financial stability and long-term goals. Choose a mutual fund scheme that aligns with your objectives and set up an SIP online. Next, authorise automatic deductions from your savings account based on your chosen frequency through an E-mandate. 

Learn how E-mandates make it easier to automate savings through SIPs and how IDFC FIRST Bank supports this approach by means of its digital solutions.

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What is an E-mandate?

An E-mandate is a digital instruction that authorises your bank to deduct a specific amount from your savings account automatically. Once set up, payments are collected on a recurring basis without any manual effort. This facility is commonly used for SIPs, insurance premiums, and EMIs.

How do e-mandates work in India?
 

You initiate the process through IDFC FIRST Bank’s digital platforms and after selecting the mandate option, authenticate it using net banking or a debit card. Once approved, the mandate activates, and scheduled debits begin. You get alerts before and after each debit, which helps you remain informed about your transactions.

What is a Systematic Investment Plan (SIP)?

An SIP allows you to invest a fixed amount in mutual funds at regular intervals, e.g., monthly. This method enables automatic savings, averages out the cost of your investments over time (rupee-cost averaging), and reduces the impact of market volatility. You can start with small amounts and raise the contributions as your financial capacity increases or goals evolve.

How to automate SIP savings using E-mandates
 

IDFC FIRST Bank, with its premium digital solutions, helps you process the E-mandate quickly. You can activate auto-debit via your phone banking app or the online portal.

The process usually involves the following steps:  

  • Choose your SIP in mutual funds and specify the amount
  • Set the frequency for automatic payments
  • Select ‘Auto Pay’ or ‘E-Mandate’ as your payment method
  • Authenticate using debit card or net banking credentials
  • Confirm the mandate, after which the bank will process your request.

Once approved, your SIP will be automatically debited each month.

Benefits of using E-mandates for SIPs
 

Take a look at the benefits you get with E-mandates:

  • Consistent savings:

    • Automation eliminates the risk of missing instalments and keeps your monthly investment plan on track.  

  • Peace of mind:

    • You no longer have to log in every month to pay manually.

  • Power of compounding:

    • Regular, timely investments help maximise compounding over the long term. 

E-mandates are secure and compliant. Transactions happen via bank-authorised channels and comply with RBI and NPCI norms.

E-mandates vs. other auto-debit methods
 

While banks offer options like Electronic Clearing House (ECS) for recurring payments, E-mandates are quicker to set up, easier to manage, and 100% digital. Unlike many other systems, you don’t need to visit a branch or submit physical forms. Moreover, you get real-time updates, and IDFC FIRST Bank lets you view and manage your active mandates online. 

Conclusion
 

Automation encourages a regular habit of saving and investing. With an E-mandate in place and SIPs linked to it, you can save and invest without thinking about it every month. Over time, this turns into an effective wealth-building strategy.

By leveraging IDFC FIRST Bank’s digital banking solutions, you can set up recurring transfers instantly and achieve your financial goals without manual efforts. 

Frequently Asked Questions

How do you create an SIP mandate?

You can create an SIP mandate via IDFC FIRST Bank’s mobile or internet banking platform. Simply click on your SIP and choose the E-mandate or auto-debit option. Authenticate through your debit card or net banking credentials. Now, your SIP payments will be deducted automatically on the selected date each month.

What is an auto SIP mandate?

An auto SIP mandate is a digital authorisation that lets your bank deduct a fixed amount automatically for your SIP investments on scheduled dates. Once it’s activated, your SIP runs without monthly approvals or manual transactions.  

Is an SIP 100% safe?

While SIPs reduce volatility through disciplined investing and rupee cost averaging, there are no 100% guaranteed returns. Your investments’ value can fluctuate based on market conditions. However, SIPs are a well-regulated investment vehicle, and the automation through E-mandates adds more convenience and discipline to your investment approach.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirstbank.com for latest updates.

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