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One Time Mandate (OTM) Facility

What is OTM Facility?

OTM, or ‘One Time Mandate’ is a one-time registration process where in the investor authorizes his banker to execute debits to his bank account up to a certain limit based on requests received from Tata Mutual Fund. Tata Asset Management Private Limited (TAMPL) and/or its registrar (CAMS)) shall forward the debit requests to the bank based on the transaction request from the investor for SIP/ Lump Sum purchases. The debits will happen through National Automated Clearing House (NACH).

What are the advantages of OTM facility?

The advantages of OTM are as follows:

  • One time registration process
  • Invest either Lump Sum or SIP
  • Registration of SIP in only 10 days
  • Available for all schemes of Tata Mutual Fund.
How do I register for OTM-NACH facility?

Registration is just a onetime process. All you need is to fill and submit a simple ‘OTM form’ duly signed after reading the “Terms and Conditions” of this facility. Please note that the signatures on the form should be as per your bank records because the form will be sent to your bank branch. Please also attach a cheque copy or cancelled cheque for us to validate your bank account. You may submit the form to any of the Investor Servicing Center.

How will OTM – NACH debit happen?

OTM debits will happen through National Automated Clearing House (NACH). This is a new generation system implemented by the National Payment Corporation of India which aims to consolidate the multiple Electronic Clearing System (ECS) systems running across the country. The NACH system helps in significant reduction in registration time to just 10-12 days as against the current registration time of 30 days in ECS (Debit) system. Additionally, this system provides a positive confirmation from investors’ bank about registration acceptance or non acceptance, unlike ECS (Debit) System. Gradually, various banks are joining the NACH platform and it is expected that all major banks will start participating in this system.

What is National Payments Corporation of India (NPCI)?

National Payments Corporation of India (NPCI) was set up by Indian Banks Association under a mandate from the Reserve Bank of India in 2008. It is the umbrella organization for all retail payment systems. The core objective is to consolidate and integrate the multiple systems with varying service levels into nation-wide uniform and standard business process for all retail payment systems. The other objective is to facilitate an affordable payment mechanism to benefit the common man across the country and help financial inclusion.

What is NACH?

NPCI has implemented the National Automated Clearing House (NACH), a web based solution for Banks, Financial Institutions, Corporate and Government to facilitate interbank, high volume, electronic transactions which are repetitive and periodic in nature.
It is a centralised system, launched with an aim to consolidate multiple ECS systems running across the country and provides a framework for the harmonization of standard & practices and removes local barriers/inhibitors. It will provide a national footprint and is expected to cover the entire core banking enabled bank branches spread across the geography of the country irrespective of the location of the bank branch.
It also supports Financial Inclusion measures initiated by Government, Government Agencies and Banks by providing support to Aadhaar based transactions.

NACH is a much superior, robust and scalable platform for the following reasons:

  • The prevalent Electronic Clearing Service (ECS) in India is available at around 89 centers in the country. While it is operated by the RBI at 15 centers, it is operated by commercial banks at the remaining centers.
  • The ECS model lacks a standardized operating model, uses manual processes and has other inherent challenges such as inconsistent timelines around post transactional query management and servicing.
  • The new centralized NACH solution is expected to consolidate the current multiple ECS systems and provide a framework for removal of the local barriers / inhibitors.
  • The platform is a robust, secure and scalable with both transaction and file based transaction processing capabilities.
What are the benefits of NACH to investors?
  • Reduction in registration time to just 10 days as against the current registration time of 30 days in ECS.
  • This system provides a positive confirmation from investors' bank about registration acceptance or non-acceptance, unlike ECS.
  • Investors can opt for a one time registration and avail this facility any time for their future investments
  • Investors can make use of this payment mode for their Lump-sum Mutual Fund investments apart from SIPs
  • Offers flexibility to the investors in making subsequent investments across all schemes without payment instruments (Cheques/DDs)
  • Realization of funds from the investors account happens on the day of transaction which helps investors track their payments on time
Who can avail for OTM- NACH facility?

Only existing investors having a folio can avail for registration of OTM-NACH facility. It can be availed by existing Individual and Non Individual Investors.

How can investor register One Time Mandate?

Investor needs to fill the mandate registration and submit the same at any of the Designated Investor Service Centre. The details to be filled by investor are:

  • Date
  • Select the Bank account Type.
  • Provide complete Core Banking System Bank account.
  • Bank Name with which the bank account is held.
  • IFSC / MICR code of the bank with which the account is held.
  • Upper limit of the Amount that can be debited from the account against transaction.
  • Folio number.
  • Contact details of the investor.
  • Period for which the mandate need to be registered
  • Signatures and Names of all the account holders as per mode of holding in the bank.
How can investor do lumpsum additional investment upon registering One Time Mandate?

While submitting the additional purchase request investor needs to tick the payment mode as OTM facility (One Time Mandate). Amount for the additional purchase transaction shall be debited from the bank account registered in One Time Mandate. Hence, this facility eliminates the need to submit a cheque at the time of transaction. The amount will be debited from the bank account mentioned on the OTM form automatically as per the instructions given by you.

Is the OTM-NACH mandate registration at a Scheme level or at a Folio level?

The OTM - NACH mandate registration would be at a Folio level.

If an investor has multiple bank accounts registered, should he/she register multiple OTM- NACH mandates?

Investors should sign an OTM - NACH mandate form for the bank account which he would want to debit for his purchase of schemes of Tata Mutual Fund. NACH mandate is an agreement between Investor, his/her Bank and Tata Mutual Fund mandating TMF to debit the investor bank account anytime based on investor request.

Does the investor need to have an account with a specific bank only to register for OTM facility?

The OTM facility is not restricted to a particular bank/ branch/ location. As long as a bank is participating in the NACH system, investors can register OTM facility for any of the bank branches. For updated list of banks eligible for NACH Facility please refer to http://www.npci.org.in/home.aspx Product & Services Tab -> National Automated Clearing House Drop Down -> Live Bank Drop Down.

Is there a frequency of debit for OTM NACH mandate registration?

We are offering only one option as frequency - ‘As and When Presented’. This would enable any time debit and allow the investor to perform both Lump-sum and SIP.
NACH offers to select the frequency of debit - Monthly, Bi-Monthly, Quarterly, Half-Yearly, Yearly and ‘As and When Presented’. However, in all these options except when ‘As and When Presented’ is selected the debit cannot be done beyond the specified frequency. Hence, if an investor, who has selected ‘Monthly’ as frequency, has a SIP running and wants to make second purchase in the same month then the investor would not be able to do so as his/her bank would reject this transaction. This would cause inconvenience to the investor. Therefore, we are offering only one option as frequency - ‘As and When Presented’.

Is OTM NACH applicable for Inflows only?

Yes, currently NACH is applicable for Purchase, Additional Purchase and SIPs only.

Is there any per transaction limit?

The Investor can specify this in the debit amount field. Per transaction should be less than or equal to the amount as mentioned in OTM - NACH mandate.

Is there any upper or lower limit for transacting through the OTM facility?

The per transaction upper limit is as mentioned in the OTM form. The limit in the OTM NACH form is the per transactions limit through any mode.

Can the debit amount field be left blank?

Debit amount is a mandatory field and therefore cannot be left blank.

Can this debit amount be updated / edited?

Yes, this can be edited using the ‘OTM - NACH Update/ Cancellation form’.

Is there a validity period for OTM NACH?

Yes, NACH has a validity period till 31/12/2099.

If an investor wishes to stop availing the OTM NACH facility, what is the process?

The investor can provide the request for cancellation using the ‘OTM - NACH Update/ Cancellation form’.

Under what circumstances does an NACH mandate get rejected?

A NACH gets rejected if the investor has provided an incorrect bank account, folio number or other incorrect details. It also gets rejected if the investor’s bank is not participating in NACH. Please visit the website  http://www.npci.org.in/clearing.aspx for updated list of banks eligible for NACH Facility.

What will be the applicable NAV for the transaction?

The applicable NAV for the transaction will be dependent on various factors under provisions of SEBI (Mutual Fund) Regulations, 1996 like receipt time of the Physical form; the scheme, the type of transaction, and in case of investments of Rs Two Lakhs or more, the date & time of realization of funds. All transactions under OTM facility will be treated on par with similar transactions received through any other modes.

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