Electronic Clearance Service (ECS) is an electronic mode of transferring funds from one bank account to another. Financial institutions use it to make payments such as salaries, pensions, dividend interest and deduction of EMIs for loans.
To avail of an ECS mandate, you need to inform your bank first. The ECS mandate contains details of your bank account and branch, among others. An ECS user can set a limit for the 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 from 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 financial institutions.
The ECS mandate requires details like your name, account number and your bank’s name. Based on this information, the financial 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 bank.
You don’t need to submit a cheque while providing an ECS.
An ECS limit is the maximum amount that an institute can deduct from a customer's bank account.
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.