What is a bank mandate in mutual fund investments

What is a bank mandate in mutual fund investments?

A bank mandate is a one-time authorisation that allows FYERS to automatically debit your bank account or UPI for mutual fund investments. It eliminates the need to manually approve each transaction, making SIPs and one-time investments seamless, secure, and paperless.

How a bank mandate works?

When you set up a bank mandate on FYERS, you give permission for FYERS to deduct funds—up to ₹1,00,000—from your registered account to invest in mutual funds on your behalf.

  • Mandate type: E-mandate
  • Limit: ₹1,00,000 per day
  • Applies to: All SIPs and one-time investment transactions
  • Validity: Can be used across FYERS

This makes mutual fund investing efficient, especially for Systematic Investment Plans (SIPs), as the amount is automatically debited on your chosen SIP date.

How to create a bank mandate for mutual fund?

  • Go to the 'Mutual funds' section in your FYERS account (Web or Mobile).
  • Click the mutual fund you want to invest in and select either 'SIP' or 'One-time'.
  • In the order window, choose the bank account you want to use.
  • If there’s no active mandate, you’ll be prompted to create one for that account.
  • Follow the on-screen instructions to complete the e-mandate setup using UPI or Net Banking.

Once the mandate is approved, it becomes available for all future SIP and one-time investments using the same bank account.

What if?

ScenarioExplanation
You choose e-mandateComplete the process online and authorise via UPI or Net Banking. Takes 3–4 days to activate.
You want to increase the mandate limitYou’ll need to cancel the current mandate and create a new one with a higher limit.
Your mandate is pending approvalWait for bank confirmation; transactions cannot be processed until it's active.
Mandates simplify all future investments. Ensure your mandate is approved and active before scheduling SIPs to avoid transaction failures.

Last updated: 11 Jun 2025