Zerodha has asked asked its users to manually transfer funds until e-Mandate transactions are reactivated
Discount broker Zerodha is migrating to HDFC Bank as its sponsor due to Reserve Bank of India's (RBI) restrictions on Yes Bank, its present sponsor.
e-Mandate transactions allow financial service companies to deduct specified amounts from a user’s bank account. This is especially beneficial for systematic investment plans (SIPs) where a certain amount is supposed to be invested at regular intervals.
Now, Zerodha has paused e-Mandate transactions for the next couple of weeks.
“During this transition period, Zerodha users will continue to receive reminder SMSs and emails to fund your account manually on the scheduled date as the auto-debit feature of the mandates won't be operational,” the company informed its users via an email.
It asked its users to manually transfer funds until e-Mandate transactions are reactivated.
Founded in 2010, Zerodha is an Indian financial service company known for its discount pricing model.