InvestmentFinancial Glossary
UPI Mandate (UPI Autopay)
Definition
A feature that allows you to authorize recurring payments or one-time future payments through UPI. For SIP investments, you can set up a UPI mandate that automatically debits your bank account on the SIP date. The mandate specifies the maximum amount, frequency, and validity period, and each transaction is authenticated via your UPI PIN.
Why It Matters
UPI mandates have simplified SIP management significantly. Unlike NACH (which takes 15-20 days to register), UPI mandates activate within minutes. Most mutual fund platforms now support UPI Autopay for SIPs up to Rs 1 lakh per transaction. However, the Rs 1 lakh per-transaction limit means very large SIPs still need NACH or netbanking mandates.