ECS – important aspects/ features :

On receipt of the required mandate, the funds (payments/ receipts) can be handled by a bank through ECS. ECS (debit) is generally used by utility companies like electricity companies, telephone companies and other to receive the bill payments directly from bank accounts of their clients. Instead of payment of utility bills by means of cash or cheque payments, an individual or a company can make payment through ECS. In case the company has the facility of payment through ECS, the client can give a mandate to the company to receive the utility bill amount from his bank account directly. The utility company (service provider) based on the ECS mandate given by the client, would advise the client’s bank to debit the bill amount to the client’s account on the due date (or on a any date before the due date as per the client’s request) and transfer the amount to the company’s own bank account. Similarly, ECS (Credit) can facilitate payment to various clients like dividend warrants, maturity values of Annuities.