ECS is a method of electronically transferring money between bank accounts. An ECS mandate from the consumer is required in order to debit or credit payments to a bank account.
ECS means Electronic Clearance Service (ECS). It is a method of electronic money transfer between bank accounts. Financial firms utilize it to deduct loan EMIs as well as pay salaries, pensions, dividend interest, and other expenses.
How to get a duly signed ECS Mandate?
You must first notify your bank in order to use an ECS mandate. Your bank account information, as well as that of your branch, is included in the ECS mandate. The most that can be taken from an ECS user’s account can be limited by them. A signed ECS mandate, together with basic KYC information and a canceled cheque, is required when making an easy EMI purchase on the Bajaj Finserv EMI Network. The ECS mandate form, which authorizes the bank to deduct a specific amount each month from your bank account, also mentions the debit timeline. In a nutshell, an ECS mandate permits and authorizes the clearing house and the bank to make a specific monthly deduction on a predetermined date.
3 Reasons Why ECS is important while applying for the Insta EMI Card
There are various reasons why ECS is important while applying for Insta EMI Card. The major 3 reasons may be described as follows:
Bulk money transfers and consistent cash flow
Money can be transferred in bulk using ECS from one account to several other accounts at once. ECS is used to make payments for any kind of bulk payment, including interest, income, dividends, pensions, and recurring monthly expenses. Payments for mutual funds or insurance premiums may be automatically taken from your account via ECS after a predetermined amount of time. Businesses can maintain a consistent cash flow by deducting payments from sources automatically. It enables companies to grow without being constrained by the need to spend more money trying to get paid. Additionally, it aids customers in avoiding debt cycles.
Less Paperwork and Smooth Process
Paperwork has considerably decreased as a result of ECS. Once ECS is activated, banks only need to match important details like name and account number before crediting the money. Every transaction is documented, which increases transparency throughout the process. ECS makes sure that the transfer at a due date goes successfully since businesses and organizations distribute bulk payments to numerous recipients.
Fast Transfer and Enhanced Safety
The money is transferred in no more than three to four business days. You don’t have to sign cheques in person at the neighborhood bank branch to allow deductions. Fraud is quite unlikely to occur. The maximum amount that can be deducted from the account is another choice. No deduction would ever be made that was greater than the maximum allowed.
How to avail of the ECS Mandate?
Get in touch with your bank and do the next actions to set up an ECS mandate:
- A properly filled-out ECS mandate form will be provided by the bank.
- According to the form, you have given the bank permission to make debit or credit deductions for ECS.
- The ECS mandate form will contain all necessary information regarding the bank account, name, etc. A properly completed and signed ECS mandate form is the actual authorization document.
- The bank will send you an SMS with all the transaction data following each transaction.
According to instructions from the RBI, customers are not charged a fee for ECS transactions. However, there is a small fee for switching banks. Customers are not assessed any additional ECS fees by banks.
The amount that can be transmitted or distributed via the ECS is typically unlimited, but in the event of an ECS debit, each user may select a limit over which no deduction would be performed. The maximum amount that can be debited from the bank account is known as an ECS limit.
Apply for the Insta EMI Card Online
To apply for your Insta EMI Card online, you only need to follow a few easy steps.
- Step 1: On the Bajaj Finserv website or mobile app, enter your mobile number and confirm the OTP.
- Step 2: Enter your basic information, including your complete name, PAN, and birthdate.
- Step 3: Choose your gender and employment category.
- Step 4: Utilize your Aadhaar to confirm your KYC.
- Step 5: After a successful KYC, pay the joining fee once.
- Step 6: To finish the e-mandate procedure, click “Activate Now.”
Your card is ready to use after your e-mandate registration has been successful.
ECS is quite helpful for people who have either chosen to take out a loan or have regular monthly credit card payments. With the ECS mandate, they may easily set up a monthly deduction and won’t have to keep track of the precise payment date.
The Bajaj Finseerv website and app provide the online application for the Bajaj Finserv EMI Network Card. With a 30-second approval time, the process is entirely digital. In addition, you can apply for the EMI Network Card at any of the 1.2 lakh+ partner retailers spread throughout 3,000 cities in India.