Electronic Clearance Service (ECS) is an electronic mode of transferring funds from your bank account to another. It is used by financial institutions for making payments such as salary, pension, dividend interest, and deduction of EMIs for loans.
To avail an ECS mandate, you need to inform your bank first. The ECS mandate contains details of your bank account, branch, and other account details. An ECS user can set the limit for maximum amount that can be debited from their account.
When you purchase products on easy EMIs on the Bajaj Finserv EMI Network, you need to provide a signed ECS mandate, along with basic KYC details and a cancelled cheque.
ECS is an electronic mode to transfer funds transfer one bank account to another. The customer needs to provide a mandate that authorises the institution, such as Bajaj Finserv, to debit or credit payments to the bank account.
The charges for ECS may vary for different institutions.
The ECS mandate requires details like name, account number and your bank’s name. Based on this information, the institution accepting the ECS payments prepares the data and submits it to the clearing house through its bank. After validating the data, the ECS is processed and the amount is debited from the given bank.
You don’t need to submit a cheque when providing an ECS.
The NACH mandate form contains your bank account and branch details. Through a NACH ECS mandate, customers can set a maximum limit that can be debited from their account by the financial institution.