{"id":5130,"date":"2021-06-06T14:52:37","date_gmt":"2021-06-06T09:22:37","guid":{"rendered":"https:\/\/razorpay.com\/blog\/?p=5130"},"modified":"2025-03-05T09:22:59","modified_gmt":"2025-03-05T03:52:59","slug":"etmoney-razorpay-emandate","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/etmoney-razorpay-emandate\/","title":{"rendered":"How ETMONEY Used Razorpay eMandate to Enhance Investors\u2019 Experience"},"content":{"rendered":"
\n

India has been, slowly but effectively, adapting to all things digital – from shopping to banking. However, the value of online processes was realized only recently. When the COVID-19 pandemic struck India, it brought to light the volume of physical processes that our nation still had in place.<\/span><\/p>\n<\/div>\n

<\/div>\n

Many of the physical procedures take place in sectors like banking, lending, and investment. Paper trails and long processing time were one of the most concerning aspects of these sectors. That was until RBI and NPCI took major steps to reform these processes in order to keep up with the times.<\/span><\/p>\n

Physical Mandate to eMandate: A journey<\/span><\/h2>\n

One of the often-used modes of payment in the financial sector is recurring payments. From interest payments to SIP deductions, periodic payments characterize a large part of this sector. However, up until a few years ago, the processes governing these payments were entirely physical. <\/span><\/p>\n

To authorize recurring payments, one needs to submit a mandate. <\/span>Submitting a mandate form means that a bank or a third party can automatically debit a certain amount from your account, at regular intervals. Earlier, this process of obtaining, filling, and submitting the form used to be entirely physical. This is why it is known as <\/span>Physical Mandates<\/b>.\u00a0<\/span><\/p>\n

[bctt tweet=”Physical mandates can take up to 21 days to process completely. This increases the processing time and affects all subsequent steps.” username=”Razorpay”]<\/p>\n

Then came the apparent paperless approach in the form of <\/span>Paper NACH<\/b><\/a>. Under this, there was no direct manual intervention since all forms would be sent over the email. However, contrary to popular belief, it wasn\u2019t paperless. The customer had to take printouts of said forms, sign it manually, and then upload it again. This paper-bound step led to multiple errors.<\/span><\/p>\n

In 2018, RBI and NPCI made a landmark decision by completely digitizing the Paper NACH process. This was called <\/span>eMandates.<\/b> With eMandates, the infrastructure for recurring payments was digitized, making the whole process free of human intervention. With features like digital signatures and no paper requirement, there was a major upgrade in the system.<\/span><\/p>\n

Related Read: <\/b> What Is A Direct Debit Mandate? & How Does It Work?<\/b><\/a><\/p>\n

Razorpay eMandate: Digitizing recurring payments<\/span><\/h2>\n

Earlier this year, Razorpay introduced eMandates as a part of our Subscription offering. Razorpay Subscriptions<\/a> were introduced to simplify and automate recurring payments. The aim of Razorpay eMandates was to reduce human intervention at every payment cycle<\/a> and digitize periodic debits.<\/span><\/p>\n

With more than 30 banks already added, eMandate is the much-required upgrade to Subscriptions. Companies availing Razorpay eMandate get an additional advantage on multiple fronts. Along with saving time and efforts, eMandate has helped our merchants increase customer retention and reduce administrative costs.<\/span><\/p>\n

The biggest strength of Razorpay eMandates lies within its API. We are one of the first enablers of the NPCI-launched eMandate feature. Thanks to the smooth user experience and better TATs, our partner brands rely on us to give them an efficient experience with eMandates.<\/span><\/p>\n

Razorpay eMandate<\/a> became a much-needed respite for many companies including ETMONEY. Read below to see how they embraced and improved their performance with eMandates.<\/span><\/p>\n

How ETMONEY joined the eMandate wagon<\/span><\/h2>\n

ETMONEY<\/a> is a pioneer in the space of financial services. The company aims to simplify the financial journey for its customers. With ETMONEY, a user can access all major kinds of financial products including investments, borrowing, and insurance.<\/span><\/p>\n

The problem: Longer time, worried customers<\/span><\/h4>\n

As a platform whose major offering is mutual funds, ETMONEY was well versed with physical mandate. Unfortunately, they were also well versed in the problems that came with it. This specifically affected the customers who opted for the SIP method of investment.\u00a0<\/span><\/p>\n

SIP is a method of investing in mutual funds that involves equal monthly contributions being made to the portfolio. This was one of the biggest use cases for recurring payments at ETMONEY. To authenticate the monthly deduction for SIP investments, they had to use physical mandate and Paper NACH, which came with operational issues.<\/span><\/p>\n

Challenges with Physical Mandate:<\/span><\/p>\n