Who can initiate a ECS Debit transaction?
Ans : ECS Debit transaction can be initiated by any institution (called ECS Debit User) who has to receive / collect amounts towards telephone / electricity / water dues, cess / tax collections, loan instalment repayments, periodic investments in mutual funds, etc. It is a Scheme under which an account holder with a bank branch can authorise an ECS User to recover an amount at a prescribed frequency by raising a debit to his bank account. The institutional User has to fi rst register with a ECS Centre. The list of approved ECS Debit Centres is available on the website of Reserve Bank of India at http://www.rbi.org.in/scripts/ECSUser.aspx. The institution has to also obtain the authorisation from its customers and their bank account particulars prior to participation in the ECS Debit scheme. The user institutions collect the details by way of an authorisation (known as mandate) from the customer with due acknowledgement by the customer’s bank branch. A copy of the mandate should be avai
