What is a mandate and how to create them for SIPs on Coin?

A mandate is a payment mechanism that automatically makes payments for your SIPs from your bank account. You can create mandates on both the Coin app and Coin web platform.

Creating a mandate on Coin app

To create a new mandate on the Coin app:

Tap on Account.
Tap on Mandates.
Tap on Create mandate.
Enter the name of the mandate, select the method and tap on Proceed.
If you have selected UPI, tap on Confirm Autopay and Pay ₹1 and enter your UPI PIN.

The UPI autopay is set up immediately unlike regular bank mandates that can take upto 72 working hours. Once the UPI autopay request is authorised on the UPI app, ₹1 is debited from the bank account and will be credited back in T+4 working days.

If you've selected Bank e NACH, your mandate will be successfully registered and activated within 3 days. You can check the mandate status by tapping on Mandates, where pending and active mandates will be displayed.

Creating a mandate on Coin web

To create a new mandate on Coin web:

Login to Coin.
Click on Mandates.
Click on Create a Mandate.
Enter a mandate name if you wish to.
Enter the UPI ID and accept the terms and conditions.
Click on Continue.
Accept the mandate authorisation request on the UPI app.

Linking a mandate to a new SIP

On Coin app

Select the fund and tap on Buy.
From the dropdown under Mandates, select your mandate.
Enter the amount, frequency, and tap on Create SIP and then on Create.

On Coin web

Select the fund and click on SIP.
From the dropdown under Mandates, select your mandate.
Enter the amount, frequency, and click on Create SIP, and then on Confirm.

Linking a mandate to an existing SIP

On Coin app

Tap on Investments.
Tap on SIPs.
Select the SIP and tap on Modify.
Tap on Mandate and select your mandate from the dropdown.
Tap on Modify and then again on Modify.

On Coin web

Click on SIPs.
Click on Options and then on Modify.
Click on the dropdown under Mandates and select your mandate.
Click on Modify SIP and then on Confirm.

You can unlink the mandate from the SIP by following the same steps and selecting None in the mandates section.

How mandates work

On T day, the amount will be debited from your bank account and credited to ICCL's bank account once your mandate is active. ICCL is the clearing corporation of BSE Star MF, and all mutual fund orders are processed through BSE Star MF.

Zerodha does not charge for setting up mandates, but your bank may apply charges. You can rename, modify, or delete active mandates. Pending mandates are automatically deleted if registration is unsuccessful.

Things to keep in mind

You cannot link mandates if the SIP due date is on T+2 day
Maximum daily limit for each mandate is ₹1 crore per day
You can create mandates using primary and secondary bank accounts
Current bank accounts cannot be used to create mandates
You cannot modify or delete a SIP linked to a mandate two days prior to the next instalment date
A single SIP cannot be linked to multiple mandates, but multiple SIPs can be linked to a single mandate
SIPs will not be retried if mandate payment fails
NRI clients can register mandates from their NRE savings account if they hold an NRE demat account, while NRO account holders can register through their NRO savings account registered with Zerodha
Banks may levy penalties if mandate transactions fail due to insufficient balance
You cannot create mandates using cheques or physical mandate forms
Non-individual account holders cannot create mandates and can only pay using NEFT or RTGS, so they cannot create STPs
To ensure your SIP starts within the current month, you must set it up at least 2 days prior to your preferred execution date. For example, if you want your SIP to execute on the 5th of each month, you need to set it up on or before the 2nd of the current month. If you set up the SIP on the 3rd with an execution date of the 5th, it will start from the next month

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