What is Electronic Clearing Service (ECS)? Know all about ECS mandate

When you buy anything on EMI, then the service provider may have also asked you for the submission of the signed ECS mandate along with other KYC documents. 

ECS stands for Electronic Clearance Service. ECS is the electronic mode of funds transfer from any bank to another. It is used by multiple channels for making payments such as dividend interest, pension, salary and more. It can also be utilized for the payment of some bills such as water, power and EMI payments. 

When you give someone a signed ECS mandate, it means that you are allowing the person or institutions to deduct a particular amount over a tenor or one time. 

You will need to inform your financial institution and provide a go-ahead authorizing them to debit or credit payments via your bank without issues. The ECS mandate carries the particulars of your bank and account. It is now the job of your bank to communicate about the details of the fund being deducted and credited to the account. Once credited or debited, you will receive a message from your bank about the same. 

An ECS user can easily set the maximum limited that can be deducted from the bank account after letting the institutions know about the purpose of debit. It also includes a validity period or a tenor for each ECS mandate. 

You are now aware of the concept of ECS mandate and in what conditions you can avail of the ECS mandate facility.

Also, Read This: What is NACH Mandate | Types of NACH Mandate?