FinTech Glossary

What Is a Payment Mandate?

A payment mandate is an authorisation given by a customer allowing a business to debit their bank account automatically for recurring payments or scheduled payments under predefined limits and frequency.

How Mandates Work in India

Mandates can be created through NACH, e-mandates, or UPI mandates. Customers approve the mandate digitally, specifying amount caps and duration. Once active, payments are auto-debited without manual approval for each transaction, while customers retain the ability to pause or cancel mandates.

Why Mandates Are Important

Mandates reduce missed payments and manual follow-ups for recurring collections. They improve cash flow predictability and operational efficiency for businesses while offering convenience and control to customers.

Business Use and EnKash Context

Mandates are widely used for subscriptions, utilities, insurance premiums, and EMIs. EnKash supports structured payment and approval workflows that help businesses track recurring obligations and maintain visibility over mandate-driven transactions.