Auto-debit mandates enable you to automate your SIP payments. You can make lumpsum investments as well in just a click. It is also compulsory for rebalancing your portfolio. It is an authorization you give your bank to enable Niyo Money to transfer money from your account directly to the Mutual Fund’s account only as per your instructions to Niyo Money. This is similar to what you give banks for the loan repayment schedule. This was earlier known as ECS.
There are 2 kinds of auto-debit mandates in Niyo Money:
- E-mandate (mandate registration through net-banking): You can set it up via net banking/debit card in just 2-4 days in your Niyo Money account. Most of the big banks have e-mandate available with them. If e-mandate is available for your bank, you will be shown this option only.
- NACH (mandate registration through paper scan): NACH is the paper version of the e-mandate. For NACH you need to download the file > print it > sign it > scan it and upload it in the NACH section of your Niyo Money account. We will then send it for processing and in approximately 25 business days your bank will approve it. If e-mandate is not available for your bank, you will be shown this option only.
You can refer to this FAQ to understand how to enable the auto-debit.