Discontinuation of pooling for mutual funds and how it affects Coin

The request will be for the exact amount you map the SIP, but the autopsy registration will be 1 lakh by default.

Please DM me your ID to check this further?

Done

So it is exactly like Nach E mandate?

Why not just setup mandate for the SIP amount? I don’t understand this love for maximising mandates, when my SIP is just for 1k. 1 lakh is a scary figure

This is a standard industry procedure be it with us or any other vendor for any service in the industry; you can’t edit the amount for which the mandate is being created, it’s just a maximum amount of the debit allowed for an autopay. It completely depends on the SIP amount that has to be debited and all the notifiers are in place for the same :slight_smile:

Yeah I understand it is the headache of the user in case he ups the SIP amount to create another mandate.

But the option to atleast minimize risk by lowering mandate amount should be there (when setting up). User can delete and create new mandate if he wants to increase the amount

As per my understanding, autopay requests over 15k cannot proceed without UPI PIN

My bad, does not apply to mutual fund transactions.

There is no risk involved here; the system will take the amount for whenever the SIP is mapped to :slight_smile:

Yeah, it does not, the limit is 1 lakh after the authorization or first-time execution, so one autopay can be used to power multiple SIPs and you don’t need to create multiple autopays.

@Neelesh @Bhuvan -

Can you help understand why we (customers) are asked to make the “Demat account maintenance charges” manually by adding funds every quarter?

Why can’t we have a feature where we can add an autopay set up using a credit card just like a Netflix subscription charges us?

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Agree, this has kind of become a pain for the case where person is only doing MF investment so there is no regular fund transfer to zerodha trading account and then these demat charges accumulates with interest penalties.

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@fire23 @Mub we are working on this facility and shall be avaibale on Console. As of now, you can set up a quarterly instruction using a NACH to fund your account for AMC, like set up a nAch and mention debit date near to the quarterly AMC date. Meanwhile, we are workign on UPI Autopay and that will be the simplest solution to this, we shall give an update soon on this as this is WIP.

Mandates have been upgraded to one crore now.

Effectively allowing one crore withdrawal without any OTP or authorisation?

I do not understand how you guys just throw around such numbers on these apps without thinking 100 times.

For my 1000 sip I have to allow you to withdraw 1 crore, and then trust your pinky promise that you won’t.

1 lakh (although still huge, was atleast not that big in the grand scheme of things).

I don’t understand why you guys don’t let me set the mandate amount, and let me bear any charges associated with changing it later if I want to do the same.

The stress of having such a thing link this linked to your savings account is unimaginable for me.

1 crore, just repeating it again. Like some 100 rupee UPI payment you are enabling it.

The system will take whatever you or ICCL tell it to. It’s your/their server lmao.

Please atleast discuss setting 1 lakh mandate instead of this huge 1 crore figure

I don’t recieve any emails or SMS before a mandate is taking place. Only debit instructions after it

Hey @Neelesh

I was going through this circular by the RBI.

It seems to be the latest on this matter since it was issued in Dec 2023.

It states that mandates upto 1 lakh will be allowed for mutual funds without any additional factor of authentication (AFA). This was increased from 15k.

How is Zerodha (and BSE StarMF by extension) able to deduct upto 1 crore then? Does that require AFA?

This circular pertains to UPI autopay mandates; Zerodha currently offers a NACH mandate. Hence we can offer debit up to 1 cr.

Discourse has messed up the link, so maybe you are not able to read the circular. It is linking main page instead of circular. I can see that e-mandate and mandate on card is also mentioned. NACH e mandate is the same right?

https://rbi.org.in//Scripts/NotificationUser.aspx?Id=12570&Mode=0

" in terms of which relaxation in Additional Factor of Authentication (AFA) was permitted while processing e-mandates / standing instructions on cards, Prepaid Payment Instruments and Unified Payments Interface, for subsequent recurring transactions with values up to ₹15,000/-, subject to conditions listed therein."

"decided to increase the limit from ₹15,000/- to ₹1,00,000/- per transaction for the following categories: (a) subscription to mutual funds, "

On the NPCI site too, only physical mandate is allowed for 1 crore. Is the site outdated? I’m quite curious of how Zerodha is able to implement such a thing fully online.

NPCI had issued this circular on 21 July 2023 announcing the increase in eNACH limits in two phases. Here is the extract from the circular that talks about the limit increase:

The FAQ section on NPCI’s website seems yet to be updated.

Thanks for the quick response. And all of this is without AFA or does the 1,00,000 without AFA limit still apply here?

The AFA (Additional Factor Authentication) requirement is for UPI mandates. The limit for UPI mandates was enhanced from Rs. 15,000 to Rs. 1,00,000 for mutual fund transactions. However, eNACH mandates are where you authenticate your mandate during a one-time registration process with your Netbanking or Debit Card credentials. These are two separate products.

AFA does not apply to eNACH mandates.