Avoid Draining Funds with ECS Charges!

Are you having trouble seeing ECS charges deducted from your bank account as a result of the mandate?

No worries; we are here to help you out. 

But before we discuss the solution in detail, let’s understand the fundamentals behind the process.

1. What is a Mandate?

You may have heard people around you say, “I pay my SIPs through Mandate,” but what does that even mean?

A mandate is a payment mechanism that allows you to make SIP payments automatically from your bank account. The National Automated Clearing House (NACH) facilitates this process by debiting money each month on a specified date to finance the SIP. So you can invest without having to remember the dates of your SIP.

2. What are ECS mandate fees?

The Reserve Bank of India has removed the regulations on fees associated with ECS transactions, prohibiting bank branches from charging customers for processing or service fees associated with debiting or crediting accounts.

However, if there are any ECS charges, sponsor banks or the clearing house must disclose them to customers in a transparent manner. As a result, as a customer, you will never be charged for a payment made through Mandate.

Note: At present, there are no charges for mandate registrations or fund transfers via Mandate at Paytm Money. Paytm Money never charges customers a fee to create a mandate on our platform.

Then the obvious next question is, “Why do I get charged by the banks at times?”

And the answer is – you could be charged ECS mandate fees for the following:

• Banks can charge you for ECS sign verification charges; this information is available on financial institutions’ websites under service charges.
• A penalty will be levied if you fail to maintain the minimum balance for which you have set up the Mandate.

Paytm Money Expert Advice:To avoid any unnecessary charges, make it a habit to keep a sufficient balance in your account one day before your SIP date. For more information on the ECS charges that will be levied, please contact your respective bank.

3. How can Paytm Money assist you?

Paytm Money allows you to set up Auto-Pay, which creates a Mandate with your verified bank and allows you to automate your SIP payments. As promised, we will never charge you for any Mandate.

Here is a comprehensive step-by-step guide to setting up a mandate:

Step 1 – After logging into Paytm Money, go to the Mutual Fund tab and select Setup Auto-Pay.  

Step 2 – Select an existing bank account or add a new bank account to link to your mandate.

Step 3 – After selecting your bank, you will be redirected to the Internet banking page to configure Auto Pay.

Note: Keep your Internet banking ID and password handy. 

Step 4 – Once Mandate is successfully set up on the Paytm Money App, you will receive a confirmation pop-up on the screen.

To know more about the process, please check this video: