On the contrary, if we want to take some money from atm, and cash is not present (which happens frequently), we cannot ask any penalty from bank (instead our free atm transaction is still reduced).

RBI should send notice to all the banks. It will only happen when an influential person takes this matter to the court of law.

This happened to me once with HDFC Bank. I immediately cancelled all my mandates.

Please read the book - बैंकों का मायाजाल. You will get to know the true nature of Banks. Banks are actually meant for serving the super rich. They are not for the layman or general public.

There's another major difference between a bounced cheque and turned down SIP installment. A cheque involves a sizeable human time - which of course translates into salaries paid. SIP is just one server talking to another and even if they 'waste' some time, it's in milliseconds at worst. So 1. Either charge the customer 'actuals' of server time. 2. The banks should employ better IT folks who deploy better algorithms than just keep making repeated attempts. How about sending a simple SMS to the investor after the first failed attempt?

Earlier there was no charges for mandate failure (ECS failure), but now its 590 rupee for 1 failure, it means almost return of 6 month gone if you have 1k sip.

I have never enabled mandates. I do my SIP payments manually. Sometimes when I don't like, I would not make payment. That's the flexibility I have if I do manual payment.

Once you start the SIP. The mandate is requested by the Indian clearing corporation and not by zerodha... So yes technically its a kind of bounce only. And there are n number of reasons the mandate can fail for... So retrial mechanism is indeed necessary. Nothing is wrong in retrial. But i believe once the mandate fails for insufficient fund. The user should be notified with the reason of failure and time gap before making the 2nd attempt So that user can add money to the account.

A cheque can bounce only once, mandate should have a transaction number so that repeated attempts should have the same number or there cannot be reattempts for same transaction number.

Wow that's some shady practice from the banks! Thanks for sharing and making us aware about it!

Once it happened to me and I took it as a kind of lesson. I never knew the platform would attempt for a payment multiple times. Thanks to you.

It's only with axis bank. Niether HDFC nor SBI have charged me for not keeping SIP balance. Axis did charge me way back in 2020 too

I don't set anything in auto mode. I would like to do all such money things manually whenever possible. I don't do SIP, I invest that amount as lumpsum instead.

Superb explanation and really thankful to you for creating this awareness in this video. Ofcourse, if it happens to anyone else other than you, definitely they would not have got back the unethical debit amount. Thanks Ji!

Highly appreciable ! thanks for making this video !

very well put... kudos

Thank you for this eye opening video.

Thankyou sir for making this video ❤

This awareness video is really helpful sir. Thank you for taking time out for making this video and helping the fellow investors and novices in the market

Thanks for sharing this. My wife had similar experience with ICICI bank

6:25 Incorrect, when you register for a mandate on Zerodha, the default max amount is INR 1 crore and debit frequency is "As On When Presented". This literally means you have authorized Zerodha to debit as much as 1 crore rupees as and when it wants until the mandate calls for it.

First thing is I don't use any intermediary platform for SIP. Do it directly from the fund platform. Second thing is we have to be diligent on the availability of funds at that time when the SIP hits the account. Otherwise better do manual investments monthly when funds are available.

Wonderful awareness and clearly explained, really appreciate your efforts!

Thanks for making us aware of unscrupulous practices

Thanks a lot for sharing this info

Very informative brother

Thanks for awareness ❤

This happened to me 7 or 8 months back, this happened to me recently as well. SBI and HDFC Bank accounts had debited for the same reason. I too think its outrageous how banks are stealing from us and there's nothing we can do about it. By the time RBI takes some action on the bank, many of us would have lost our money and ofcourse these banks will find someother way to extrot from us. So at the end, banks would find new ways to steal the money and we will be loosing money.

Personally, I support the fact that multiple attempts should not be made on the same day or perhaps within seconds. Like you said money cannot magically appear within minutes but there is nothing wrong with treating it as a bounced cheque. If you write a cheque to yourself (different bank account) and it bounces the bank will charge you, similarly the bank doesn't care if the mandate was made to a biller or your own SIP account. Even a bounced cheque can be represented once or twice (I am not sure) but an unintentional benefit of cheques is that you cannot represent them for the next 2 to 3 working days as you will not get physical possession of it. Perhaps, they should not reattempt a failed mandate within 48 or 72 hours and the max attempts should be made similar to bounced cheques.

Thanks for sharing...

Another reason to do regular lumpsum investments in liquid funds and then doing STPs from liquid funds to your desired mutual funds

Kudos 💞🔥🇮🇳 keep asking difficult questions❤

It has happened to me too with axis bank. I have since closed the account.

I kinda directionally knew about this for a while so I don't schedule any SIP. Just FYI if it's relevant, this penalty is implemented by banks on any scheduled txn: 1. EMI (of any sort) 2. SIPs 3. Recurring FDs (not entirely sure on this one though)

Thank you sir

Thank you for raising the issue

Each and every mandate should be known to customer. Hidden rules can be huge loss for common retailers.

Thanks Bro! We need more friends like you.

thanks for bringing it to notice

At least in HDFC bank. I get message well in advance a week before that my SIP will be deducted on this perticular date.

Rather than mendates, SIP should be done through Billpay. Even on transaction failure no panelty is applied

IDBI BANK LTD CHARGES-₹590/- FOR SO CALLED PENALTY OF -₹500/- MONTHLY SIP DEFAULT.

Thanks sir sharing Fact

Thanks for this video

Well said

Platform through which the SIP has been set up should make only one attempt & not multiple. Their should be a system in place by these platforms to inform the concern customer thru a call ( as the no of Nucience calls we get for opening sn ac) or a message.

I think compare this with an RD and how do they charge if the rd doesn't go thru. You will be surprised within the same banks they fleece the customers .

Thank you for the information Sir. I believe the API would have not hit recurringly & in your case the mandate was 4 but if the SIP's are 8, then 12 SIP's * 1 mandate would be around 6k INR is what I am guessing, not sure though

I would like to add some more nuance to the points in this video. I agree that the practice by the bank to present the mandate multiple times without checking in with the customer and then charging them for each time is an unfair banking practice in contravention with the RBI guidelines on how dishonour of payment instruments must be handled. However NACH mandates in general are equivalent to an advance cheque regardless of the use case. They can't differentiate between mandates for SIPs or mandates to pay loan EMIs. Therefore this warrants punitive charges which also includes a penalty levied by NACH on the destination bank for a failed transaction. Nonetheless there is no justification for multiple representation without consultation with the account holder.

Thanks sir for making this video.

Happened to me once. Replace the mandates to the public sector banks, the charge is lower.

Yes sir...initial starting I faced this ..such a worst banks in india

I feel so many issues with this particular with Bank known as AXIS bank. Please do anything with Axis bank with caution. Try to avoid them as your primary bank.

Same problem was happened to me sip was 2000 fine was 650 so i changed sip from 2000to 500

Mandate is equivalent to a cheque issued i.e liability

Same happened to me on emi payment of 2 wheeler by NACH , the bank declined the transaction even I had sufficient balance , after the total period of downpayment I asked omnibuds on RBI ,they weren't even helpful but they said (RBI) you can go to court for such bounce transaction

Fully agree with your views

Checks are cleared by human and charging for wasted efforts make a little sense. Sending an error code to Zerodha because of low balance is not even remotely similar. Looting the retail invested in the barb of policies.

Is sip mandate charges applied for removing the SIP

Axis bank does these kind of things, not satified with the bank and closed the account.

I know this from very early and that's why i dont have any SIP , i only invest money on the day when i have money in my a/c . Never set up sip.

Thanks for sharing, we all face this but no one has the guts the share

Too much automation is a pain. I do not use mandate. Just small step is required for payment thru UPI or net banking. You can combine payment for all SIP orders and pay in one go.

Eye opener

My view : issue with Zerodha making multiple attempts. Need to check on that first. Secondly, banks will charge for ECS decline or no funds while attempting. Even in post office , RD Auto debit ECs decline they charge 50rs. Banks do charge for this. But the amount of charge we need to check ahead of these mandates. Mutual funds amc will not charge if any sip not processed, but banks will charge penalty due to clearing process. Lets always make sure to have enough funds to avoid these.

AMCs never charge banks charge. You write to the bank they are bound to reverse the charges

Tq it is the big issue..I got this same issue thrice. But Ive noticed 3rd time.cancelled all sips.. Doing all manually now..

Thank you so much for the valuable information sir. Please raise a ticket in Zerodha platform, they shouldn't be doing retries when the end user is charged this much. Or at least they should show and get explicit approval from the users.

but you'll be notified via mail and sms right ??

Same thing happened with me. It was only 1 attempt though by et money. Icici charged me 600

The issue here is basically the likes of zerodha or bajaj fin doesnt inform you regd presentjng of NACH again and again. Recently RBI has asked these cos to sent SMS prior to presenting NACH.

RBI and SEBI should come in and make some amends regarding this matter.

In our Country, Government & Institutions have Realised that an Average Salaried Middle Class can be Easily Squeezed and they can get away with it.

That us why i never started invested at first place. I invest every month without failing as i feel its more in my control and not the other way around.

CFBR

Try is once a day, for 3 consicutive days . This was zerodha's old behavior. same carried over to bank mandate..

Zerodha does not attempt sip mandate, its just a selling partner. Attempts made by AMCs.

Only one attempt should be allowed,a failed attempt should be notified to the account holder and should be approved before the next attempt is made.

Yesterday my HDFC SIP is not credited to the AMC. Happened first time to me.

Great awareness. But, zerodha made zero money on their attempts, axis made. Dont' blame both.

i just do my investment manually. takes max 15-20 minutes per month.

Almost similar instance happened to me also. Here also the culprit is Axis bank. I too checked with them, but the reply ws unsatisfactory and the debit money can't be reversed..It ws surprising.. I too am going to fight it out. In my case it ws rs591 only, but question is on what ground??

When we try schedule neft or rtgs from our bank account and that day, there are no funds, our banks do not charge us anything, so why for failed ECS?

Brother this is a rule implemented last year, if u don't have balance and mutual funds sip is bounced then fine u have to pay, nothing special for u, so better pause the sip if u don't want to pay

It is better to do manual payment. Is there any charge applied on creating mandate and cancel the mandate

Plz share this story with Zerodha also so that they can rectify their system

Sir, please let me know how to raise complaint, it has happened more than 10 times

This is the game zeroda played with you. Why don’t you invest directly to AMC’s account.

Sebi or Rbi are the ones who give these ideas to the banks.

Axis bank cheated me through axis direct.What should i do .

👌

Happened to me last month 1.2k gone.. I forgot to keep balance in axis bank..

I shifted my bank loan from one bank to another . In the interim period both banks took emi. Is this valid ??

Yes banks are charging for many attempts it is happening everywhere

Don't do bank mandates, don't trust your bank blindly, make Sip payments through UPI everytime it's due in Coin. Don't be lazy, It takes less than a minute.

👍

This is fraud , SIP CANNOT BE treated as a liability, please claim for the psychological damage , please raise such issues with the banking ombudsman board

Let this reach the NPCI/ RBI

best is to do SIP directly from AMC

Banks ne loot macha rakhi h