What is OTM Full Form in Banking?
OTM Full Form in Banking is One Time Mandate. OTM refers to a digital mandate or authorization that is given by the customer to a bank or a financial institution to debit a specific amount of money automatically from the account for recurring transactions and payments. This is generally used for services like insurance premiums, loan repayments, for making utility bill payments etc.
Key features of OTM:
The OTM allows customers to authorize recurring payments without having to approve each transaction manually. Once the OTM is set up, the payments will be processed automatically according to the terms of the mandate. It renders tremendous convenience to the customers by automating the payment process, ensuring that the payments are made on time, without any need for manual interventions.
Security and flexibility in OTM:
One-time mandates are secured with multi-factor authentication, ensuring that only authorized transactions are processed, and the customer is generally required to authenticate the mandate during the setup process. Customers are free to set up the OTM for different purposes, such as monthly payments, investments, and other financial obligations. Banks and other financial institutions will provide online platforms where the customers will be able to manage their OTM instructions.
