ECS or the Electronic Clearing Service is a centralized system that allows bulk cash transfer to a large number of accounts. ECS is cost-effective, safe, reliable, secure and saves time. It's used by private companies, banks, financial institutions, bank departments, and any other institution that needs to transfer a fixed amount at a due date every month. ECS is of two types: ECS credit and ECS debit. ECS credit is used to deposit salaries, pensions, dividends etc, while ECS debit is used to deduct monthly credit card payment or loan EMI amount each month. It's beneficial for both the banks as well as the customer as it reduces paperwork and the arduous process of initiating payments. For every recurring monthly amount debit, ECS is used.
Another advantage of ECS is that customers don't have to remember the date each month and there's no possibility of the date being missed as well. The authorization provided by the user to the bank to auto-debit a particular amount each month is called the ECS mandate form. For credit cards and EMI loans, it’s necessary to get an ECS mandate. It’s a document validating that you have allowed the bank to deduct particular amount each month in lieu of the pre-specified services. ECS form means a document validating the bank to deduct a set amount at a due date.
ECS mandate form is a duly signed document that serves as the official proof that you have allowed the bank to make deductions. Without an ECS mandate, the bank cannot deduct any amount. ECS mandate form needs to be filled and submitted for the authorization. The ECS form can be obtained from the bank. Once the customer fills it and submits it, all the details are verified by the banks and by a payments agency such as NPCI (National Payments Corporation of India). Once the scrutiny is done, the mandate is sent to the bank and the auto-debit process begins. The permission for ECS is granted only after thorough verification.
ECS form can be obtained and filled online. The customer simply needs to contact the bank and authorize them by duly signing the form. Most leading banks provide the option of downloading ECS mandate form on their websites. ECS form can also be filled by visiting the nearest bank branch. It's there for stock trading as well as mutual funds. ECS activation can take up to a week. After the verification process is complete, it's activated and ready to use. The customer can then set a limit on ECS monthly debit: maximum amount that the bank can auto-deduct. After each ECS transaction, the customer receives a notification. In case you want to revoke an ECS mandate, you need to contact the bank, write an application in advance and submit an ECS mandate cancellation form.
Filling an ECS mandate form is easy. One just needs to correctly fill the following details:
These are the following points to keep in mind while filling the ECS form online:
Here are the major banks that provide ECS services:
Bank |
ECS Service Status |
Form Download |
State Bank of India |
Allows ECS services |
Yes |
Citi Bank |
Allows ECS services |
Yes |
HDFC |
Allows ECS services |
Yes |
ICICI |
Allows ECS services |
Yes |
Axis Bank |
Allows ECS services |
Yes |
ECS form PDF document can be downloaded from the website. Bank ECS form should be error-free.
More About Payments & Other Credit Cards |
||||
|
You can get the ECS mandate form by contacting the bank or visiting its website. It can be filled both online as well as online. While filling ensure that all details are mentioned correctly.
ECS form or Electronic Clearing Service form is a duly signed document that authorizes the bank to auto-debit a particular amount from your account each month. ECS is very useful for recurring payments like credit card bill, loan EMI or utility bills. In order to activate ECS service, ECS mandate form is required.
There's no separate form for ECS mandate cancellation. It's the same form that has three options: Create, Modify, Cancel. If you want to cancel the mandate, tick on Cancel. ECS cancellation form can be downloaded online as well as fetched from your nearest bank branch.
Each bank has a distinct utility code. If needed, it will be provided by the bank. It’s a specific ID that’s used by a bank for transferring money to another bank.
No. As per RBI guidelines, individual account holders need not pay any charge for availing ECS.