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 or lending institutions that authorizes it to deduct a certain amount for any purchases made. The ECS Mandate contains the details of your bank account, branch, and other account details. An ECS user can set a maximum amount that can be debited from their account.
When you purchase anything on EMI from Bajaj Finserv, you need to provide a signed ECS mandate, along with providing your KYC details and a cancelled cheque. A cancelled cheque is also taken by the lender to know that you are the actual owner of the bank account. Based on the bank account information shared in the ECS Mandate, a certain amount gets deducted every month as EMI until the end of the loan tenor.
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.
