eMandates (eNACH) terms

This mandate registration will be submitted through National Automated Clearing House (NACH) which is implemented by the National Payments Corporation of India (NPCI). For certain banks, the registration may not be through NPCI, as the processes for such banks may or may not be a part of the eNach ecosystem. For the purpose of this Terms & Conditions, wherever the context so mentions “I”, “Me”, "Client", "You", "Your", "We", "Us", or "Our", it shall mean any natural or legal person having a registered Client ID with Zerodha, who has agreed to login via his/her Netbanking, through his/her choice of Designated Bank Account, agree and execute the eNACH Mandate and thus agree to this Terms and Conditions which regulate the terms of usage of the Mandate created while using the Zerodha trading and demat account. “Designated Bank Account” shall mean Your bank account that is linked to Your Zerodha trading and demat account, with which You have selected to create the eNACH Mandate. You may select any one bank account out of Your bank accounts that are linked with Your Zerodha trading account. All information stored with your selected Bank at Your linked bank account would be used for all such future communication with respect to the eNACH Mandate. Please make sure to always update all Your personal details, such as; (i) Mobile number, (ii) Email ID, (iii) Communication Address, and all such other details at all times with Zerodha and with the Bank which You are selecting to create the eNACH Mandate.

TERMS OF USAGE

  • The maximum amount which can be selected to be debited via the eNACH mandate by You is dependant on the bank chosen by you which you have linked as your Designated Bank Account. Each bank, and each type of account held by You in such bank, may have a different maximum eligible amount that can be debited via an eNACH Mandate. An amount of Rs. 1,00,000 (One Lakh) would be created by the eNACH Mandate which is the default amount in aggregate that Zerodha can request to debit from Your linked Designated Bank Account at one single transaction, which is further dependant on the maximum eligibility of amount that can be debited via the eNACH Mandate facility through the bank selected by You, and such conditions on the type of account held by you with such bank.
  • You will be allowed to select/tag and plan separate scheduled payments / standing payment instructions with respect to various payments, credits required to be made, and products offered, that can be made through your Zerodha trading account. The creation of an eNACH Mandate is solely based on the selection criteria, as selected by You. The standing instructions selected/authorised by you can be selected in various timelines such as (a) Weekly; (b) Monthly; (c) Alternate months; (d) Quarterly; (f) Half-yearly; or Annually. In case, you do not have sufficient funds in your Designated Bank Account to meet the NACH Mandate auto debit requirements, please make sure to delete such standing instruction prior to the scheduled date of debit, and create a fresh eNACH transaction instruction later on as per Your convenience. The name of each scheduled payment/standing instruction can be tagged and named as per Your choice, such that You may identify or remember the reasoning of the auto debit. Please ensure that sufficient funds remain in Your Designated Bank Account at the time of collection, at all times, to avoid any legal or procedural consequences as per NPCI & RBI Guidelines.
  • This eNACH Mandate is an auto debit authorization from You to Zerodha, to debit funds from Your Designated Bank Account as linked to Your Zerodha trading account.
  • This facility shall be offered to all such clients of Zerodha, who have bank accounts at banks registered/partnered with NPCI (National Payments Corporation of India) offering such services of creating ECS mandates. The list of banks offering such services shall be updated on NPCI’s website (www.npci.org.in) from time to time. The list of banks registered/partnered with NPCI may be modified/changed at any time, at the sole discretion of NPCI, without assigning any reason whatsoever. Zerodha, at its sole discretion, may also from time to time modify/change the list of banks offering eNACH Mandate creation services, in case of any operational inconveniences. In any such cases where Zerodha has modified the list of banks offering NACH Mandate services on its platform, Zerodha shall notify clients of the same.
  • Any standing instructions / scheduled payments for all such investors/clients using banks which have been removed by NPCI or Zerodha shall have all their existing standing instructions discontinued with immediate effect.
  • Banks may reject any eNACH Mandate based on their own validations and internal procedures, which is not at the control of Zerodha. Zerodha is not liable to communicate or for any consequential claims or complaints with respect to such rejections.
  • This eNACH Mandate can be linked/created only to/with your Designated Bank Account that is linked to your Zerodha trading account only.
  • This eNACH Mandate shall be confirmed and registered at the Bank’s end, therefore any requirement of funds during this period should be taken care of by You manually at Your end.
  • You have the option to cancel the eNACH Mandate, at any time by requesting your Bank with which you hold your Designated Bank Account. This process may differ from bank to bank, and you would have to contact your Bank’s support team or Your relationship manager of such respective bank where you hold your Designated Bank Account. In case of any modifications, cancellation of requests with respect to Your scheduled payments or standing instructions, You would have to send any such modification/cancellation requests 4 Working Days (i.e. T-4 Days: If you would like to cancel your eNACH Mandate on 27th June, then you would require to place a modification/cancellation request on 23rd June) prior, before 11PM.
  • This eNACH Mandate will be used to debit money from Your Designated Bank Account towards the Zerodha trading account only. Payments / scheduled payments / standing instructions can be made towards any product, service, or any such credit for margin requirement or for trading and investing purposes, where payments/credits can be used or made through your Zerodha trading account / Kite login.
  • In case an eNACH Mandate created by You is not successfully created within 5 days from such request, a new eNACH Mandate would be initiated on Your behalf. As in certain cases, with certain banks, eNACH Mandates may take longer than 7-10 days to create, a new eNACH Mandate would be created on your behalf after the 5th day from your initial request of a Mandate creation. In case there are 2 such Mandates running in any such case, whichever Mandate is accepted and created by Your bank first, will be the successfully created eNACH Mandate linked to your Designate Bank Account.

UPDATION OF PERSONAL INFORMATION

Clients must ensure that all his/her details with Zerodha and his/her Bank where he/she holds the Designated Bank Account is updated at all times as all such details will be used for all related communication with respect the eNACH Mandate. Details such as Mobile, Email ID and Address shall be updated by You at all times.

VOLUNTARY ACT

All clients agree to these terms, conditions, usage and registration of the eNACH Mandate using their NetBanking login voluntarily, in case they wish to use the services of the eNACH Mandate. Their Aadhaar will have to be registered with their Designated Bank Account in order to successfully create an eNACH Mandate.

Payments made through eNACH Mandate is only an alternative method of payment from Your Designated Bank Account. The other ways to fund Your account are NEFT/RTGS/ Online Fund/UPI transfer and it is not mandatory to sign the eNACH Mandate for any payments required to be made for products and services offered via Your Zerodha trading account.

ACKNOWLEDGEMENTS

All clients using the services of creating such an eNACH mandate clearly acknowledge that:

  • Payments made through eNACH mandate is only an alternative method of payment through Your Designated Bank Account. The other ways to fund Your account are NEFT/RTGS/ Online Fund transfer and it is not mandatory to sign the eNACH Mandate for any payments required to be made for products and services offered via Your Zerodha demat and trading account.
  • In case of insufficient funds in your Bank Account during a particular scheduled debit/standing instruction of an eNACH Mandate created by you, it may result in a dispute as prescribed in The Payment And Settlement Systems Act, 2007. Any punishments or penalties as per Clause 5 will be applicable to all Clients not maintaining sufficient funds in their Designated Bank Account during any scheduled payment or standing instruction. Any such maintenance of insufficient balance during such scheduled debit, may lead to a deduction or negative credit rating score & your bank may report the same towards credit information companies as prescribed by RBI.
    Please make sure to maintain sufficient credit balance in Your Bank Account OR delete any particular standing instruction/’s, in case you do not have sufficient funds in your Bank Account, before your scheduled payment date. A new Mandate would have to be created after the deletion of an existing Mandate, in order to continue using the scheduled payment/standing order feature.
  • This mandate is given to Zerodha by You for payments to be made towards any and all products and services which can be paid through your Kite / Zerodha trading and demat account. This shall include margin payments and collection of MTM debit for derivative trades or charges towards trading/investing purposes and depository services as agreed by You during account opening at Zerodha.
  • Zerodha will credit my/our trading account and indicate the entry as “eNACH Mandate” along with such other additional information such as a reference number and/or any such other additional information to identify the transaction.
  • Since I/we are agreeing to participate in this payment mechanism, I/we are submitting this eNACH Mandate in the format prescribed. The information supplied by me/us to Zerodha will be true, accurate, updated and complete in all respects and will be duly certified by my/our Bank.
  • The eNACH Mandate submitted by Me/Us shall be final and any such changes with respect to personal information such as contact details and deletion/pausing of scheduled payments/standing orders shall be confirmed by submission of a fresh eNACH Mandate.
  • For any standing instructions / scheduled payments, the amount demanded from the Bank should be calculated in advance to the date of execution of such a standing order / SIP by You, which should be inclusive of: any premium amount; any debit value along with any additional interest payments to be made; the amount to cover the appreciation in market value, if any, of the executed standing instruction orders / SIPs and/or other charges inclusive that may incur on the above said transaction.
  • Upon any default or discrepancies on My/Our part, it is understood that Zerodha shall act according to the terms of the agreement executed as per the Account Opening Form and the Applicable Law as stated in this Terms and Conditions.
  • That I/We shall give a one time mandate to Zerodha and the last executed eNACH Mandate by me/us shall be considered by Zerodha at all times. No additional or fresh eNACH mandate is required towards scheduling fresh orders. As and when the mandate amount is to be increased, or a standing order / scheduled payment is required to be deleted, a fresh mandate would have to be created.
  • In the case of any standing instruction or scheduled payment, where the eNACH auto debit is a failure as per the mandate authorized by me, and my/our ledger balance is below the requirement as per the standing order/instruction that was scheduled or authorized by me, that particular month’s standing order / SIP investment will be cancelled.
  • Zerodha shall, at all times, take its best efforts to send all standing instruction orders / scheduled payments in time. In case of failure of order placement or any auto debit due to any unforeseen circumstances, Zerodha will not be liable to Clients / You for any changes in prices based on NAV/value of shares due to non-execution of orders or non-execution of auto debits from Your Designated Bank Account.

CONSEQUENCES OF NOT MAINTAINING SUFFICIENT FUNDS

In case of insufficient funds in your Bank Account during a particular scheduled debit/standing instruction of an eNACH Mandate created by you, it may result in a dispute as prescribed in The Payment And Settlement Systems Act, 2007.

Having insufficient funds in your linked Bank Account during a scheduled auto debit would lead to various legal consequences. As per Section 25 (5) of The Payment And Settlement Systems Act, 2007, non execution of electronic fund transfers due to insufficiency of funds shall have the same consequences of “Dishonour of cheque for insufficiency, etc., of funds in the account” as per Section 138 under Chapter XVII of the Negotiable Instruments Act, 1881.

As all Banks and NBFC are required to become a member of all the Credit Information Companies as directed by RBI under RBI Circular RBI/2014-2015/405 DBR.No.CID.BC.60/20.16.056/2014-15, and upload data with respect to credit information, any non execution of electronic fund transfers due to insufficiency of funds may be required to be uploaded by all such Banks and NBFCs. Therefore, in case of any upload of Client credit information data with respect to insufficiency of funds would affect the Client’s credit score unfavourably.

Please make sure to maintain sufficient credit balance in Your Bank Account OR delete any particular standing instruction/’s, in case you do not have sufficient funds in your Bank Account, before your scheduled payment date. A new Mandate would have to be created after the deletion of an existing Mandate, in order to continue using the scheduled payment/standing order feature.

APPLICABLE LAW

All such mandate registrations shall be made and processed by following the below provisions and guidelines in mind:

  • Electronic Clearing Service (“ECS”) Procedural Guidelines - ECS Debit - prescribed by Reserve Bank of India (RBI) dated June 30, 2015. All such related notifications, rules, guidelines, circulars issued by RBI shall be applicable to all mandate registrations created on Zerodha. For ease of reference, please do refer to the FAQ on ECS issued by RBI (https://rbi.org.in/Scripts/FAQView.aspx?Id=55).
  • National Automated Clearing House (“NACH”) Procedural Guidelines.V.3 issued by National Payments Corporation of India (“NPCI”), i.e. the umbrella organization for all retail payments in India.
  • The Payment And Settlement Systems Act, 2007, which is an Act to provide for the regulation and supervision of payment systems in India and to designate the Reserve Bank of India as the authority for that purpose and for matters connected therewith or incidental thereto.
  • All such other Laws applicable to the Republic of India.