It can be used by institutions for making payments such as distribution of dividend interest, salary, pension, among others.
It can also be used to pay bills and other charges such as telephone, electricity, water or for making equated monthly installments payments on loans as well as SIP investments. ECS can be used for both credit and debit purposes.
How do you avail of an ECS scheme?
You need to inform your bank and provide a mandate that authorises the institution, who can then debit or credit the payments through the bank.
The mandate contains details of your bank branch and account particulars.
It is the responsibility of the institution to communicate the details of the amount being credited or debited to their account, indicating the date of credit and other relative particulars of the payment.
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