The introduction of UPI mandates simplified the process of managing recurring payments, ensuring you don't have to
manually authorise each payment while still retaining control over your finances.
What is the UPI mandate?
The UPI mandate revolves around convenience and automation. Specifically, a UPI mandate is a pre-approved instruction
given by you to your bank via the UPI platform, permitting automatic deduction of payments from your account.
Whether it's your monthly rent, gym membership, or insurance premiums, a UPI mandate ensures that these payments are
processed seamlessly.
Key components of UPI mandate
1. Authorisation: This is the step where you approve the mandate using your UPI PIN. It ensures that
the mandate is securely authorised, giving you control over the payments.
2. Frequency: You decide how often the payments should occur—daily, weekly, monthly, etc. This
flexibility allows you to set up the mandate according to your specific needs.
3. Amount: The specific amount to be debited from your account is defined during the mandate setup.
This ensures that the exact amount is automatically deducted as per your instructions.
How does the UPI mandate work?
To use this feature, you need to grant one-time approval to the merchants for whom you want to automate payments. When setting up a subscription, you must provide details such as the subscription start date, merchant name, and debit frequency. The process involves selecting a subscription plan, authorizing the transaction with your UPI PIN (a one-time authentication step), and then enjoying automated deductions without any further action. You can easily revoke or pause mandates at any time through the UPI autopay-enabled app, giving you a flexible and user-friendly way to manage recurring payments.
Benefits of UPI mandate
1. Convenience: Perhaps the most prominent advantage is the convenience it offers. Once set up, a
UPI mandate automates your payments, removing the need to remember due dates or manually process transactions.
2. Timely payments and cost-efficient: With a UPI mandate, you pay your bills on or by the due date.
This is particularly beneficial for managing bills, loan EMIs, and subscriptions, where timely payments are crucial.
By ensuring timely payments, UPI mandates help you avoid late fees or penalties, which can accumulate over time. This
leads to better financial management and cost savings.
3. Security: The process of creating and authorising a UPI mandate is secured by your UPI PIN,
ensuring that all transactions are safe. Additionally, you receive notifications for each debit, keeping you informed
and secure.
4. Flexibility and control: UPI mandates give you full control over your payments. You can modify or
cancel mandates as per your changing financial needs, providing flexibility in managing your expenses.
5. Seamless integration: UPI mandates integrate seamlessly with various financial services, from
utility providers to subscription services, allowing you to automate a wide range of recurring payments.
Also Read: How to set up UPI
PIN without Debit Card: A complete guide
Conclusion
Understanding what the UPI mandate is can simplify your recurring payments by automating them, ensuring you never
miss a due date or have to pay a late payment fee. The convenience, security, and flexibility it offers makes it a
valuable tool for managing your finances.
Disclaimer:This article is for information purpose only. The views expressed in this article
are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or
the author 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. Please consult your financial advisor before making
any financial decision.
