Investing in mutual funds is a great way to build your wealth over time. However, it can be quite tedious to manually transfer money every time you want to invest. That's where a Bank Mandate comes in handy! In this blog, we'll explain what a bank mandate is and how you can set it up for your CAMS account in just a few easy steps.
Firstly, let's understand what a bank mandate is.
When you invest in Mutual fund, you can transfer the amount via NEFT, UPI, Net Banking, by adding biller and via other payment modes. However, if you set up a Bank Mandate, it helps you to automate the investment process, so you don't have to worry about manually transferring money every time you want to invest in mutual funds. All you need to do is share the OTP to confirm the transaction.
In simple words, a bank mandate is permission given by you to your bank to automatically transfer money from your bank account to your mutual fund investment account. This authorization allows mutual fund companies to withdraw money directly from your bank account on specific dates, as per the mandate given by you. It is a convenient and hassle-free way to invest in mutual funds regularly.
PS - Please note this is not a payment and no amount will be debited from your account.
How to set up Bank Mandate?
Step 1: Log in to MF Central
The first thing you need to do is log in to your MF Central account by visiting their website at https://app.mfcentral.com/portal/commercial/emandate. Once you're on the website, enter your login credentials (username and password) to access your account.
Step 2: Click on Transact
Once you're logged in, you need to click on the 'Transact' option. This option can be found on the left side of the homepage of your MF Central account. After clicking on 'Transact', you need to click on the 'EMandate' option.
Step 3: Click on New OTM Registration
Once you're on the EMandate page, click on 'New OTM Registration'.
Step 4: Fill in your details
Select which Mutual Fund you want to set up Mandate for. You can choose either Cams or Karvy. This will take you to a page where you need to fill in your details. Make sure to enter all the details correctly, including your bank account number, IFSC code, and other relevant information.
PS: The mandate limit is the maximum amount of money you want to invest in a month. The Maximum Limit you can mention is INR 10 Lakhs. Amount beyond this limit can be invested using other payment modes.
After filling in your details, click on 'Approve'. It will take you to your net banking page, where you need to enter your net banking credentials to approve the mandate. Please note that no money will be debited for this process.
And that's it! Once your bank approves the mandate, you can start investing in Mutual Funds by using only OTPs.
We hope this blog has helped you understand the process of setting up a Bank E-mandate for your MF Central account. If you have any further questions or queries, feel free to reach out to us at firstname.lastname@example.org.