An e-mandate is an electronic instruction that allows a financial institution or service provider to automatically debit funds from a customer’s bank account for a recurring payment or transaction. E-mandates are typically used for regular bill payments, loan repayments, and subscription services.
E-mandates are a digital alternative to the traditional paper-based mandate, where customers had to physically sign and submit a mandate form to authorize recurring payments. With e-mandates, customers can provide their authorization online through their bank’s internet banking portal or mobile app.
E-mandates are convenient for both customers and service providers, as they eliminate the need for paper-based documentation and reduce the time and cost involved in processing recurring payments. However, it’s important for customers to understand and carefully review the terms and conditions of any e-mandate they authorize, as they are granting permission for funds to be debited automatically from their bank account.
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