An eMandate authorises automated debits from your bank account for recurring payments (for example, SIPs). Below is a concise breakdown of possible charges and typical bank practices.
1. Setup & transaction charges
- Setup: Registration of an eMandate is generally free for customers; platforms do not charge for mandate setup.
- Successful transactions: No transaction or processing fee is charged to the customer — the debit amount equals the authorised mandate amount.
2. Charges for eMandate failure (insufficient funds)
If a scheduled eMandate debit fails because of insufficient balance, the bank may charge a penalty (similar to an ECS/cheque bounce fee). Below are the example charges you provided:
| Bank | Failure Charge (Insufficient Funds) |
|---|---|
| HDFC Bank | ₹450 (1st), ₹500 (2nd), ₹550 (subsequent) per month; seniors get ₹50 discount per failure |
| ICICI Bank | ₹500 per failure |
| State Bank of India | ₹250 per failure |
| Axis Bank | ₹500 per failure |
| Kotak Mahindra Bank | ₹500 per failure |
| Punjab National Bank | ₹250 per failure |
| Yes Bank | ₹25 per failure |
To avoid these charges, ensure sufficient balance on the scheduled debit date and keep a buffer amount in the account.
3. Mandate verification charges
Some banks may apply a one-time mandate verification fee at setup; others do not. Examples from your list:
| Bank | One-time Verification Charge (approx.) |
|---|---|
| Axis Bank | ₹115 |
| Bank of Baroda | ₹115 |
| Bank of India | ₹201.25 |
| Canara Bank | ₹150 |
| Punjab National Bank | ₹100 |
| State Bank of India | ₹50 |
| Syndicate Bank | ₹236 |
Banks reported not charging verification fees (examples): HDFC Bank, ICICI Bank, Yes Bank, IDFC, IndusInd Bank, Bandhan Bank.
4. Who charges what?
- All the above fees (failure penalties, verification fees) are bank charges, not platform charges.
- Investment platforms generally do not charge for eMandate setup or transaction processing.
5. Notifications, cancellations & best practices
- Banks/platforms typically send notifications or SMS before the scheduled debit — still, keep track of debit dates.
- You can cancel or modify an eMandate via bank netbanking/mobile banking or via the platform (if supported) — do this before the scheduled debit to avoid failure charges.
- Always maintain sufficient clear balance (and a buffer) to prevent penalties.
Note: Charges and policies vary by bank and may change. Confirm the latest fee schedule with your bank before setting up or relying on an eMandate.
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