How to set up a UPI Auto-Pay mandate for mutual fund SIPs

Tue, 19 May 2026 00:00:00 +0000

A UPI Auto-Pay mandate is the faster, more flexible alternative to NACH eMandate for mutual fund SIPs. Activation is instant (vs NACH’s 3-5 working days), per-transaction caps are typically Rs 1 lakh (sufficient for most retail SIPs), and the in-app authorisation flow is smooth.

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UPI Auto-Pay for SIPs

Tue, 19 May 2026 00:00:00 +0000

UPI Auto-Pay enables mutual fund SIP debits via UPI’s recurring-payment mechanism, complementing the traditional NACH mandate route . UPI Auto-Pay was rolled out by NPCI in 2020 and has progressively become a popular route for SIP debits, particularly on direct-plan platforms.

Framework

NPCI UPI Auto-Pay

Recurring-payment mandate via UPI.
Customer authorises one-time, then debits happen automatically.
Per-mandate limits set by customer.
Same UPI infrastructure used for one-time payments.

Onboarding flow

Customer initiates SIP on AMC / aggregator platform.
Selects UPI as debit method.
Receives UPI mandate request on their UPI app.
Approves once with UPI PIN.
Subsequent monthly debits automatic.

Comparison with NACH

Dimension	UPI Auto-Pay	NACH mandate
Setup speed	Same-day	3-15 working days
Maximum mandate	Rs 15,000 (varies)	Higher (Rs 1+ lakh typical)
User experience	Smartphone-native	Form / physical sign
Failure rate	Lower (instant)	Higher (operational issues)