In NACH you permit your bank to draw money periodically from your account... by filling in a Form.
In eNACH, you permit this electronically / online. Hence, the cumbersome process of filling the Form and submitting it to an authorised entity is obviated.
eNACH streamlines the process of authorising banks to electronically auto debit funds from your account. It simplifies recurring payments, reducing paperwork and enhancing efficiency for both customers and banks.
The first step is for the payer (i.e., the person making the payment) to provide their consent to the payee (i.e., the person receiving the payment) to initiate automatic deductions from their bank account. This can be done through the payee's website or mobile app.
Once the eMandate form is filled out, the payer must authenticate themselves using their credentials. Say, UPI, Debit Card or Net banking.
After authentication, the eMandate is registered with the NPCI, which acts as an intermediary between the payer's bank and the payee's bank. The NPCI validates the mandate and forwards it to the payer's bank for processing.
The payer's bank verifies the eMandate and sets up the payment instruction in their system.
This allows the payee to automatically deduct payments from the payer's account on the due date.
The payer can cancel the eMandate at any time. We are going to offer this facility online to unitholders – via
PPFAS SelfInvest– soon.
One Time Mandate (OTM) : The 'e-wallet' of investing
Today, e-wallets have become very popular. You fund these through your bank account and then use the money to transact without going through any payment gateway.
We suggest you view One Time Mandate (OTM) as an e-wallet for the purpose of investing.
Once you register the OTM with the relevant bank, you can transact seamlessly, merely by ticking the OTM box either in the online or offline Form. It saves you the hassle of affixing a cheque or routing payment through a payment gateway, remembering your Debit card / net banking details etc.
There is also no chance of an OTM transaction failing due to technical reasons, unlike a regular online transaction which may fail due to payment gateway related issues.
Here are some of the frequently asked questions:
OTM involves a one time registration process which will allow you to conveniently undertake lumpsum / SIP investments in ">
, both, offline and online.
By registering this mandate, you will authorise the relevant bank (which is registered in your Folio) to debit a certain
maximum amount per day, as per your choice (Say, upto ₹ 50,000/- per day) towards investment in our scheme. This mandate can either be given for a fixed period (Say, 5 years) or remain valid till you cancel it.
Of course, you could always choose to invest a sum lower than this limit.
Benefits:
- Invest through any mode (Physical/ Internet) via SIP or as a lump sum
- Invest offline without affixing a cheque or online without visiting the Payment Gateway
- Reduction in registration time to around 15 working days as against the current registration time of 30 days in ECS.
- This system provides a positive confirmation from investors' bank about registration acceptance or non-acceptance, unlike ECS.
- Investors can opt for a one time registration and avail this facility any time for their future investments
- Investors can make use of this payment mode for their Lump-sum Mutual Fund investments apart from SIPs
- Offers investors, the flexibility to make subsequent investments across all schemes without payment instruments (Cheques/DDs)
Registration is just a one time process per
Folio. All you need is to fill and submit the duly signed ‘OTM Form’. The signatures on the form should be as per your bank records because the form will be sent to your bank branch. There is no need to attach a cheque copy or cancelled cheque.
What details do I need to mention on the OTM Form?
Mandatory details to be mentioned on the form are:
- Bank account number
- Bank name & branch
- IFSC and/or MICR Code
- Amount (Your daily limit)
- Folio number or application number
- Signature as in bank records
- Mobile no & Email id
Please ensure that there is
no overwriting on the OTM Form. Overwritten forms will not be processed.
Specifying the amount on the OTM Form:
We suggest you choose a reasonably high limit. This will help you undertake additional investments at short notice.
Doing so will not compromise safety, as no transactions will happen without your authorisation through physical signature / Online authentication through our website.
No. NACH mandate registration can be availed along with a financial transaction as well as a non-financial transaction
Yes, Both categories can avail the benefits of OTM.
At the time of registration, the investor can select the frequency of debit - Monthly, Bi-Monthly, Quarterly, Half-Yearly, Yearly and ‘As and When Presented’.
In all these options except when ‘As and When Presented’ is selected the debit cannot be done beyond the specified frequency.
Hence, if an investor, who has selected ‘Monthly’ as frequency, has a SIP running and wants to make second purchase in the same month then the investor would not be able to do so as his/her bank would reject this transaction. This would cause inconvenience to the investor.
Therefore, PPFAS Mutual Fund is providing only one option as frequency - ‘As and When Presented’.
This would enable any time debit and allow the investor to perform both Lump-sum and SIP.
Yes. You may submit the OTM Form along with the Common Application Form in the case of offline / physical applications. . However, if you create a Folio online, you will have to submit the OTM Form separately.
OTM involves a one time registration process which will allow you to conveniently undertake lumpsum / SIP investments in ">
, both, offline and online.
By registering this mandate, you will authorise the relevant bank (which is registered in your Folio) to debit a certain
maximum amount per day, as per your choice (Say, upto ₹ 50,000/- per day) towards investment in our scheme. This mandate can either be given for a fixed period (Say, 5 years) or remain valid till you cancel it.
Of course, you could always choose to invest a sum lower than this limit.
Benefits:
- Invest through any mode (Physical/ Internet) via SIP or as a lump sum
- Invest offline without affixing a cheque or online without visiting the Payment Gateway
While you could submit the OTM independently, it is necessary to fill both, while creating your first SIP. Once your OTM is registered, you need not fill it again while creating subsequent SIPs.
The OTM facility is not restricted to a particular bank/ branch/ location. As long as a bank is participating in the NACH system, you can register OTM facility for any of the bank branches. Similarly, for all bank branches participating in ECS (Debit) clearing, their account holders can register for the OTM facility. However, please take care to ensure that you register the OTM with the same bank/s mentioned in your Folio.
While the timeline will depend on NACH and ECS modalities, the process does not exceed 30 days. In many instances, it could happen with 15 working days.
Yes, The same Form has modification / cancellation options therein.
A NACH gets rejected if you provide incorrect details. It also gets rejected if the investor’s bank is not participating in NACH. Please
click here for the updated list of banks eligible for NACH / OTM Facility.
You can:
- Make fresh lump sum investments
: The payment towards your investment will happen directly through your bank account based on your defined limit on the OTM form. As mentioned earlier, you need not submit a cheque / pass through the payment gateway each time you transact.
- Start new SIPs: without submitting the bank details and attaching a cancelled cheque each time.
You can submit your transaction by:
Currently, the upper limited ₹ 5 Crores and the lower limit is ₹ 1,000/-. This is your daily limit for transactions through all modes.
No. OTM facility does away your need to submit cheques every time with every transaction. The amount will be debited from the bank account mentioned on the OTM Form automatically as per the instructions given by you.
There is no cap on the number of SIPs that can be registered through the OTM facility. However, the sum total of your various SIP installments in a day should not be more than the amount limit mentioned on the OTM form at the time of registration.
No, there is no requirement of a cancelled cheque with every new SIP registration. Just submit a cancelled cheque once with the OTM form during registration.
Yes. You can register multiple banks / bank accounts in the same folio. Just submit separate OTM forms for each of the bank/bank accounts.
The last submitted bank account registration will be treated as the default bank account.
You could do so by sending an email to
[email protected] from your registered email id. There is no need to fill up any Form.
Mention your existing default bank account and the new bank account number. We will modify the same within two working days.
However, it is vital that this new default bank account should be among those you have already been registered under OTM facility.
All transactions under OTM facility will be treated on par with similar transactions received through any other mode. Hence the extant SEBI Regulations will apply.
comments powered by
