With e-mandate generated on or after September 26, 2018 getting invalid from February 15, 2019, mutual fund distributors will have to ensure that SIPs of such clients remain active.
Earlier, National Payment Corporation of India (NPCI) had clarified that eSign based e-mandate would be valid till February 15, 2019. Simply put, SIPs activated with e-signed mandates will be discontinued after February 15. The NPCI has asked AMCs, R&T agents and exchange platforms to replace the eSign mandate with either physical mandate or other variants of e-mandate to avoid discontinuation in SIPs.
In most cases, your clients will have generate a fresh mandate to continue their SIPs. However, Cafemutual spoke to R&T agents and exchange platforms to understand how advisors can keep their client SIPs activated.
Srikanth Tanikella , COO CAMS, said, "To minimize the inconvenience caused to investors with the requirement of submission of signed physical mandate, CAMS is sending pre-filled form with the existing mandate details by email. Investors can sign the form, take a picture of the signed form and send it back as an email to CAMS for further processing. While this is to address the affected e-mandates immediately, new mandates registration will be facilitated for online upload of signed image to continue to keep the process digital."
Similarly, BSE Star MF has asked distributors to obtain physical signature on fresh National Automated Clearing House (NACH) mandate form to keep their SIPs activated. Distributor are required to generate a fresh ACH mandate and get it approved by the client’s bank. Once the mandate is approved, you can shift the SIP registration from existing e-mandate to the new mandate. You can either do it one by one or shift all existing e-mandates to new mandates in one go through bulk upload facility. Make a point to shift their mandates at least 7 days before SIP date to avoid discontinuation.
Similarly, MF Utility has launched a new facility through which your clients can update their existing mandates and continue their SIPs. With its new facility ‘SwapPayEezz’, your clients would not be required to cancel and generate fresh mandate.
