What is payment of dividend through ECS Facility and how does it operate?
Reserve Bank of India’s Electronic Clearance Service (ECS) Facility provides investors an option to collect dividend / interest directly through their bank accounts rather than receiving the same through post. Under this option, investor’s bank account is directly credited and an advice thereof is issued by the Company after the transaction is effected. The concerned bank branch credits investor’s account and indicate the credit entry as “ECS” in his / her pass book / statement of account. If any investor maintains more than one bank account, payment can be received at any one of his / her accounts as per the preference of the investor. The investor does not have to open a new bank account for the purpose.
