ECS (DEBIT):
MULTIPLE DEBITS => ONE CREDIT
ECS Debit transaction can be initiated by any institution (called ECS Debit User) which has to receive / collect amounts on account of telephone / electricity / water dues, cess / tax collections, loan instalment repayments, periodic investments in mutual funds, insurance premium etc. It is a Scheme under which an account holder with a bank branch can authorise an ECS User to recover an amount at a prescribed frequency by raising a debit to his / her bank account.
The user institution has to first register with an ECS Centre. The User institution has to obtain the authorization (mandate) from its customers also for debiting their account along with their bank account particulars prior to participation in the ECS Debit scheme. The mandate has to be duly verified by the beneficiary’s bank. A copy of the mandate should be available on record with the destination bank where the customer has a bank account.
