An e-mandate is a one-time authorisation from the buyer allowing debits from his bank account on agreed dates and limits. UPI Autopay mandates suit recurring amounts within UPI limits; NACH mandates suit larger business payments. FundRaksha Collect creates the mandate, presents each debit on the due date, retries on failure and reports results, charging 1% of what is collected. Failed or cancelled mandates can be escalated to a legal notice within 24 hours.
Why mandates belong in B2B, not just consumer billing
Mandates are familiar from EMIs, SIPs and OTT subscriptions. They are under-used between businesses, although the use case is stronger: a dealer who takes stock every fortnight, a client on a monthly retainer, a tenant paying commercial rent, a buyer repaying an agreed settlement in six instalments. In each case the amount and the date are known in advance, and the only reason the payment is late is that someone has to initiate it. A mandate removes that step.
Buyers accept mandates more readily than suppliers expect, especially new buyers, buyers on credit terms they want to keep, and buyers settling an overdue ledger who would rather authorise a mandate than face a filing.
UPI Autopay versus NACH
| UPI Autopay | NACH | |
|---|---|---|
| Set-up | Buyer approves on his UPI app in seconds | Buyer authorises through net banking or signed form; bank registers in a few days |
| Amount | Within UPI mandate limits; fixed or variable up to a cap | Larger amounts; fixed or variable up to a cap |
| Best for | Retainers, subscriptions, small dealers, settlement instalments | Large dealers, rent, institutional buyers |
| Cancellation | Buyer can cancel from his app | Buyer can cancel through his bank |
| On failure | Retry and alert; escalate | Retry and alert; escalate |
Collect supports both and recommends one based on the amount and the buyer.
How FundRaksha Collect runs mandates
- You add the buyer and the schedule: amount (fixed or variable with a cap), frequency, start date, end date.
- The buyer receives a mandate request over WhatsApp or email and authorises it on his UPI app or bank.
- Collect sends a pre-debit notification as the rules require, then presents the debit on the due date.
- Successful debits settle to your account and the invoice is marked paid. Failed debits are retried, you are alerted, and the buyer gets a reminder with a pay link.
- Mandates cancelled or repeatedly failing can be escalated to FundRaksha Legal for a notice within 24 hours.
Fee: 1% of what is collected. Start at collect.fundraksha.com.
Mandates as settlement security
When a buyer agrees to clear an overdue ledger in instalments, the weak point is the second and third instalment. Traditionally the creditor takes post-dated cheques, which work because a bounce triggers Section 138. A NACH or UPI mandate for the instalments adds a second layer: the debit happens automatically, and a failure is immediately visible rather than discovered when a cheque is deposited. FundRaksha advocates increasingly draft settlements with both: a mandate for the schedule and post-dated cheques as security. See debt settlement negotiation.
Where mandates fit in your receivables
Mandates work for predictable payers; reminders handle the rest; legal recovery handles the exceptions. The combination is described in accounts receivable collection and payment reminder automation. Before offering credit and a mandate to a new buyer, run a buyer credit check. Businesses in FMCG distribution, education services and staffing and facility services use mandates most. For an overdue buyer who will not agree to anything, book a free consultation for legal recovery.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.