If you are about to apply for any loan, then you would be asked about the ECS mandate. The majority of the customers aren’t aware of what ECS means in the first place. Even the Bajaj EMI card application compulsorily requires a proper ECS mandate for its approval. So, getting to understand the ECS is very important. Another major highlight of getting the Bajaj EMI card is that the Bajaj Finserv EMI card charges are very transparent and don’t have any transaction fees.
To help you further, here is a detailed guide on various types of ECS and the charges associated with it. Read to know more!
What is an ECS?
The term ECS means Electronic Clearing Service. Initially launched by RBI, it is used for authenticating bulk transfers from one account to another. Mostly, this method is used by the loan providers to take out the stipulated EMI every month from the bank account of the borrower. It works in a very easy and hassle-free manner. Also, it is very useful for the borrower to pay the dues on time without any last-minute annoyance.
A very important note is that the Bajaj EMI card also required a proper ECS mandate to get your card approved and functioning.
What are the various types of ECS?
Generally, there are two major types of ECS options available. They are mentioned below.
ECS Credit
When a particular bank account makes credit to another bank account, it comes under the ECS credit category. Most of the time, one bank account is debited to credit multiple accounts.
ECS debit
When one particular bank account is designated to make payments like EMIs, loan dues, mutual funds, and insurance premiums, then it comes under the ECS debit category. Based on the division of banks according to their local regions, the ECS debit is classified into three subcategories as Local ECS, Regional ECS, and National ECS.
While the local ECS is operated at 81 centres, the regional ECS has 9 centres across India. The national ECS is operated in Mumbai.
Charges associated with the ECS
RBI has deregulated all the charges that are levied by the partnered banks which are associated with the ECS mandate. The banks are advised to offer the ECS protocol completely free of charge, making it very easy for the beneficiary account holders to afford.
Read Also: Your Bajaj EMI Card is Blocked – Here is how to get it Unblocked Quickly and Easily