What is ECS and How it works in India

Electronic Clearing Service (ECS) is the easiest mode of electronic service where funds could be easily transferred for transactions. This monetary transaction could only be availed on those places where ECS service is active and the location is registered under ECS location.

Purpose of ECS

ECS is used for two different purposes. Either it is used by institutions for distribution of dividend, interest, salary, pension, etc. or it is used for making payments of telephone bills, electric bills, renewal premiums, loan payments, water bills etc. the service has made is easy for customers and also for institutions to make the payments faster and on time.

ECS Mandate

 An ECS mandate needs to be filled by the applicant. The mandate asks for bank branch details. The amount needed to be debited or credited needs to be also mentioned. The mandate needs to be authorized by the banker also. Cancelled / original cheque is also required to cross check the bank details. Here an essential point needs to be noted. MICR code is a crucial requirement needed to be filled up in an ECS mandate. There is a list of ECS Location maintained by RBI.


MICR is an acronym for Magnetic Ink Character Recognition. It is a 9 digit numeric code which helps in identifying the bank-branch participation in ECS service printed on the cheque leaves. The first 3 characters represent the city, the next 3 the bank and the last 3 the branch.

One can check the respective account from where the ECS needs to be debited / credited after due dates. Many banks give mobile alert to the registered customers also. One just needs to maintain sufficient balance in his / her account for a successful transaction. ECS can be stopped with a prior notice by the customer to the ECS authority. For a detail study and a thorough knowledge check details at RBI 


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