Introducing: UPI AutoPay for Mutual Funds

Product Announcements 🔈
1

Dear Investors,

Over the past year, we’ve been focused on making investing simpler, more flexible, and better aligned with your needs. The launch of Mutual Funds on Dhan was a key step in this journey, allowing us to offer a comprehensive investing experience that empowers you to build long-term wealth via Mutual Funds along with Stocks & ETFs.

We’ve been carefully listening to all your feedback and working hard to enhance the product to meet your expectations. Along the way, we’ve introduced some key features like Weekly SIPs, giving you greater control over how and when you invest, and Tracking External Mutual Fund Portfolios, allowing you to view and manage all your investments in one place.

Today, we’re excited to roll out UPI AutoPay for Mutual Funds, making the payment experience for your Mutual Fund investments even more seamless and hassle-free.

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What is UPI AutoPay for Mutual Funds?

In simple terms, UPI AutoPay allows you to automate your Mutual Fund SIP payments using UPI. Once set up, your SIP payments will be made automatically and on time, every time. No more missed installments, helping you stay disciplined and on track with your financial goals.

How Does UPI AutoPay Work?

With UPI mandates, you can automate your SIP payments, but there are a few conditions to keep in mind:

  1. For most major banks: SIPs up to ₹1 lakh can be automated with UPI AutoPay.
  2. For other banks: Only if the SIP amount is ₹15,000 or less, you can set up UPI AutoPay.

What If UPI AutoPay Isn’t Supported by My Bank?

If your bank doesn’t support UPI mandates, your investment will still go through successfully. Later, you can still set up AutoPay using net banking or a debit card. This way, you can ensure your investments remain uninterrupted. All the above checks will be handled at our end. :slightly_smiling_face:

Going forward, all new SIPs in Mutual Funds via Dhan that meet the above criteria will have UPI AutoPay enabled automatically during setup. This means you won’t have to worry about setting it up manually. Each SIP will have its own mandate, making it easier to manage and track your investments.

What About Existing SIPs?

For those of you already using AutoPay for Mutual Funds on Dhan, nothing will change and you will continue with your existing AutoPay setup.

If you’re still manually paying for your SIPs, you can enable AutoPay by following these steps:

  1. Go to the SIP tab > Manage SIPs section.
  2. Tap on ‘Start’ for the SIP you want to automate.
  3. Select the bank account & your UPI app where you will be redirected to approve the mandate.
  4. A reverse penny drop process will be initiated where ₹1 will be debited from your account and will be reversed shortly.
  5. Once done successfully, your mandate will be set up!

If your bank account doesn’t meet the requirements for UPI AutoPay, you’ll be redirected to e-NACH AutoPay on trying to set up your SIP.

In this case, please have your Net Banking or Debit Card details ready for the setup. Approval for the e-NACH mandate may take up to 48 hours. Once approved, all SIPs on manual payments will automatically link to the e-NACH mandate.

Here’s a detailed video on how to setup UPI Autopay for Mutual Funds :point_down:

Going forward, future installments will be autopaid, and you can manage everything conveniently from the same section of Manage SIPs.

Stay Invested in Mutual Funds via SIPs

Investing in Mutual Funds is all about consistency, and with UPI AutoPay, we’ve made that process simpler than ever. The seamless setup and quick authentication ensure that you never miss an installment, keeping you on track with your long-term financial goals.

We’re committed to continuously enhance your investing experience, and UPI AutoPay is just one of the many steps in that direction. We look forward to making your journey with Dhan even smoother in the coming times.

Best Regards,
Radhika

10 Likes
2

Thanks Radhika for wonderfully explaining the entire process in detail. Kudos to you & your team.

I hope we integrate this feature for auto adding funds in dhan trading account as well.

2 Likes
3

Hey @krishag, thanks for your kind words. We hope to continuously enhance your experience on Dhan. As discussed in our earlier conversations, we do have it in our roadmap to launch auto transfers of funds from bank account to Dhan account. We will update you once it is live!

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4

Thanks.

One quick question.

Govt. mandates all funds idle in trading account to be transferred back to bank account once a quarter. Can we opt out of this ?

I heard we can either opt out or set a limit so that balance above that amount will only get transferred back to bank.

Could u throw some light on this ?

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when we buy Mutual Funds using Dhan. Does it is credited to demat account ?

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no it remains with fund houses (SOA format) . dhan is going to bring demat account option soon

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okay. Thanks.

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If my bank doesn’t have enough balance for a particular SIP installment, do banks typically charge a penalty for UPI mandates also the same as they do for NACH mandates set up via NetBanking or debit card?

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Hi @suhyb, there is no penalty charged on the failure of UPI autopay due to insufficient funds in your bank account.

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Hi Radhika, thanks for the details. Can you please share a list of banks which support ₹1 lakh autopay?

Also, is this a one-time activity, like can ₹1 lakh UPI autopay be used for multiple SIPs?

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How to shift from existing activated e-NACH to UPI autopay?
Right now there is no such option I can find on the app and gives an error message that e-NACH is already active.
Also provide an option to edit the UPI autopay limit according to the users wish instead of default Rs.1 lakh. @Radhika @PravinJ

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Hi @Amit_Tiwari1 @specter We have a separate mandate for each of your SIPs. This means there’s no single ₹1 lakh mandate. Instead, each mandate is linked to the specific SIP amount. For example, if your SIP amount is ₹10,000, the UPI mandate will be set up for ₹10,000 only.

If you already have an active e-NACH mandate, you can delete it and set up individual UPI mandates for your SIPs as needed.

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@Amit_Tiwari1 the following banks support an amount of up to ₹1L to be automated using UPI mandate -

  1. State Bank Of India
  2. HDFC BANK LTD
  3. ICICI Bank
  4. Bank of Baroda
  5. Punjab National Bank
  6. Axis Bank Ltd.
  7. Canara Bank
  8. Bank of India
  9. Federal Bank
  10. IDBI Bank Limited
  11. Indian Overseas Bank
  12. Central Bank Of India
  13. Bank of Maharashtra
  14. IDFC FIRST Bank
  15. Yes Bank Ltd
  16. Karnataka Bank
  17. South Indian Bank
  18. Standard Chartered
  19. AU small Finance Bank
  20. City Union Bank
  21. Tamilnad Mercantile Bank
  22. TJSB Sahakari Bank Ltd
  23. Dhanlaxmi Bank Ltd
  24. Utkarsh Small Finance Bank Ltd
  25. SBM Bank India Ltd
  26. Janata Sahakari Bank Ltd. Pune
  27. Capital Small Finance Bank
  28. NKGSB Bank
  29. City Union Bank
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Thanks for clarifying regarding the specific mandates for every SIP. This is well thought. However, I see no option to delete currently active e-NACH mandate. Hope you can help me out with this.

Also, I request dhan team to provide an option to invest in MF via secondary bank accounts as well.

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@specter please go to your SIP tab > All SIP > tap on any of the SIPs to view details > tap on ‘Autopay is set for this SIP’ to view autopay details. You can then proceed to manage your autopay from here.

Also, you can invest in MF using any of the banks linked on Dhan.

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Thanks. I have cancelled e-NACH and activated UPI mandate with these steps.

I have HDFC and IndusInd banks linked to dhan. HDFC is my primary and IndusInd is secondary.
Whenever, I tried to make a payment for MF, I can see only HDFC but not IndusInd.

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Hi @specter,

We’ve highlighted this to our team and we are working on the same. Kindly make the payment through IndusInd Bank post 4:00 PM today.

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Can we say that the benefit of upi auto pay vs e-nach is that in cases of failed debit attempt due to low balance, there is no charge by banks for upi autopay but charge is there for e-nach failed txns ? is that correct

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Hi @Poornima . The issue got resolved now and I’m able to see secondary bank accounts as well.

So I have a couple of questions here:

  1. Can we setup UPI autopay mandate from secondary bank accounts as well for the existing SIP’s??
  2. When we place a redemption request, to which bank account do the money get credited for existing funds?
  3. If a start a new SIP using my secondary bank account, will that secondary bank account considered as primary bank for such AMC and on redemption, funds get credited to secondary bank account?
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Hi @specter,

Thanks for the confirmation, we have answered your queries here -

  1. Yes, you can use any bank linked with Dhan for UPI Autopay, please note it will not be applicable for existing SIPs.

  2. Redemption amount will be credited to the bank account from which first investment was made.

  3. As mentioned in point 2, the redemption amount will be credited to the bank account from which the investment was made.

1 Like