Are you curious to know what is UPI mandate? You have come to the right place as I am going to tell you everything about UPI mandate in a very simple explanation. Without further discussion let’s begin to know what is UPI mandate?
In a world where digital transactions have become the norm, the Unified Payments Interface (UPI) has revolutionized the way people in India make payments. UPI Mandate is a feature within UPI that adds an extra layer of convenience for recurring transactions, making life simpler for users and businesses alike. In this blog, we will delve into the concept of UPI Mandate, its significance, and how it streamlines payments in the digital age.
What Is UPI Mandate?
UPI Mandate is a feature within the Unified Payments Interface (UPI) system, which is an instant payment system in India developed by the National Payments Corporation of India (NPCI). UPI allows users to make real-time payments, transfer money, and perform various transactions using their smartphones. UPI Mandate takes this a step further by enabling users to set up pre-authorized recurring payments for a specified future date or on a regular schedule. This is particularly beneficial for services or subscriptions that require periodic payments, such as utility bills, insurance premiums, loan repayments, and more.
Key Elements Of UPI Mandate:
- Pre-Authorized Payments: UPI Mandate allows users to authorize recurring payments to specific beneficiaries without the need to manually initiate the transaction each time.
- Customizable: Users can set the frequency, start date, and end date for the recurring payments, making it easy to manage various financial commitments.
- Secure: UPI Mandate transactions are secure and require the user’s explicit consent and authentication for setting up or modifying mandates.
- Variety of Use Cases: UPI Mandate can be used for a wide range of purposes, from regular bill payments to EMI payments for loans.
- Convenience: It adds convenience by automating payments, reducing the need to remember due dates or manually initiate transactions.
The Significance Of UPI Mandate
- Streamlining Recurring Payments: UPI Mandate simplifies recurring payments by automating the process. Users no longer need to remember due dates, log in to their accounts, or initiate payments manually each time.
- Reducing Payment Hassles: For both individuals and businesses, UPI Mandate reduces payment-related hassles and ensures that payments are made on time, avoiding late fees and disruptions in services.
- Enhancing Financial Planning: Users can better manage their finances by setting up UPI Mandates for essential expenses. This helps in budgeting and ensuring that financial commitments are met.
- Boosting Digital Adoption: UPI Mandate contributes to the growing digital adoption in India by providing a user-friendly solution for recurring transactions.
How To Set Up A UPI Mandate?
Setting up a UPI Mandate is a straightforward process:
- Open UPI-Enabled App: Launch your preferred UPI-enabled app on your smartphone.
- Select Mandate: Navigate to the “Mandate” or “AutoPay” section in the app.
- Create Mandate: Follow the app’s instructions to create a new UPI Mandate. You’ll need to provide details such as the beneficiary’s information, frequency of payment, and start and end dates.
- Authenticate: Authenticate the mandate creation using your UPI PIN or other authentication methods specified by your bank.
- Confirmation: Once the mandate is set up, you’ll receive a confirmation, and the recurring payments will be processed as per your specified schedule.
UPI Mandate is a game-changer in the world of digital payments, offering an automated solution for recurring transactions. Its convenience and flexibility make it a valuable tool for individuals and businesses, streamlining financial commitments and reducing payment-related hassles. As UPI continues to evolve and offer innovative features like Mandate, it is no surprise that it has become a preferred method for digital payments in India, promoting financial inclusion and simplifying the lives of millions.
Can I Cancel UPI Mandate?
Cancellation of IPO UPI mandate means that the application is revoked/withdrawn. Once you cancel the IPO application, the block set up for the funds will be lifted by the bank. It usually takes 24 hours for the block to be lifted. However, this time period may vary from bank to bank.
What Is The Difference Between UPI And UPI Mandate?
What distinguishes UPI Autopay from E-Mandate? Digital payment options like; UPI mandate and E-Mandate let businesses set up recurring payments for their clients. While UPI Autopay is based on the UPI platform, E-Mandate is based on the National Automated Clearing House (NACH) system.
How Do I Complete UPI Mandate?
UPI IPO Mandate
- Login to your net banking app or BHIM App.
- Go to UPI Section >> My Mandates page.
- Check Request Received. If you do not see the request, try after few hours.
- Validate and accept the request.
How Do I Check My UPI Mandate Status?
To check the expiry of your mandate, login to the UPI app from where you have authorized the mandate. Here is the illustration to understand mandate expiry date (on GPay): In case you don’t get any communication regarding the amount being blocked/released, kindly raise a request with your Bank.
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