Guide
Linking Your Bank Account for SIP Auto-Debit
A SIP runs on an automatic bank mandate. Setting it up once is what makes the monthly investing effortless.
In shortA SIP auto-debit runs on a bank mandate, registered once through e-NACH, UPI AutoPay or a signed form, that lets the fund house debit your account on each SIP date. Set the mandate limit above your total SIPs so future step-ups fit, and choose a debit date a few days after your salary arrives.
What the mandate is
The recurring debit behind a SIP is authorised by a mandate — commonly an e-NACH (electronic National Automated Clearing House) instruction or a One-Time Mandate (OTM). It tells your bank to allow a fixed amount to be debited on a schedule, up to a set limit.
You register it once. After that, each SIP instalment is pulled automatically on the chosen date with no further action from you.
How registration works
Online, you typically authorise the mandate through net banking or a debit-card-plus-OTP flow. Some banks still use a physical mandate form. Registration is not instant — it often takes a few working days to activate before the first debit can run.
Set a mandate limit comfortably above your SIP amount if you might step up contributions later, so you don't have to re-register.
Choosing the debit date
Pick a date a day or two after your salary lands. That way the money is reliably in the account, which avoids a failed debit and any bank bounce charge. The fund doesn't penalise a missed instalment, but your bank may levy a small fee for the failed attempt.
Changing or cancelling
You can modify the mandate (amount or date) or cancel it through your platform, though changes again take a few working days to take effect. Cancelling the mandate stops future debits; it doesn't redeem your existing units.
This is educational information, not advice. Follow your platform's specific process, and consult a SEBI-registered adviser for investment guidance.
Sources
- National Automated Clearing House (NACH) National Payments Corporation of India
- SEBI Investor Website Securities and Exchange Board of India
Rules and rates were checked against these official sources at the last review.
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