NACH (National Automated Clearing House) denotes the mechanism of automated payments from the bank account of the investor, thereby facilitating the entire investment process. The investor needs to provide a one-time mandate to the mutual funds by authorizing a nominal payment from the bank account through the net banking portal.

NACH is operated by the National Payments Corporation of India (NPCI), which offers different institutions like mutual funds to receive payments periodically based on One Time Mandate (OTM).

For example, an investor registering OTM with UTI Mutual Fund will automate the investment process for the investors, as the NACH mandate deducts the amounts automatically from the investor's bank account. Such a mandate may be used to make investments in the mutual fund scheme of the investor's choice. As such, the NACH mandate allows the investors to undertake paperless mutual fund investment conveniently. In terms of the stipulations set by NPCI, the investor may set a One-Time Mandate for an amount up to a maximum of Rs. 1 lakh.

Why is it essential?

1. Automated transactions results in less manual work and so less clerical errors

2. Helps build a saving habit

3. Helps achieve specified goals without any human intervention

4. A one-time paperless and fast mandate

5. It automatically links the bank account to the mandate using the mutual fund folio.

6. SIP registration through NACH is also much easier

How to set up NACH mandate on our platform?

The NACH mandate can only be set up for making SIP investments. SIP investments are regular periodic investments made by an investor to achieve a specific amount, which he/she can eventually use to achieve their respective goals. You can set goals using our highly simplified SIP goal planner.

Steps to set up the NACH mandate on our platform -

1. Login to your Finhancers account

2. Click “Invest online” on the menu

3. Select “Bank mandate registration”

4. There are two types of mandates, namely X-SIP mandate, and E-mandate. Both mandates are explained along with the procedure to follow for each of them

The NACH mandate can be set up in the process of setting goals through our SIP goal planner. If you happen to be unaware of how to use our SIP goal planner/ Lump-Sum planner, click here

X-mandate and E-mandate -

X-SIP:

Once you click on the mandate button, mandate registration will be done. After that, you will receive an email with the mandate form attached. Print the form, clearly Sign once above the red line. Click or Scan a clear image of the document and upload it to the Website "Menu" -> "Invest Online" -> "Bank Mandate Upload" Activation will take around 2 weeks, post which you can start SIP/Lumpsum Investments.

E-Mandate (Net Banking):

Once you click on the mandate button, mandate registration will be done. After that, you will receive an email with an authentication link. Click the link and follow the steps to complete the mandate registration authentication. Once done, Mandate Activation will take around 3 days, post which you can start SIP Investments.