ECS (Debit) mandate management procedure by the banks - adherence to Procedural Guidelines - ఆర్బిఐ - Reserve Bank of India
ECS (Debit) mandate management procedure by the banks - adherence to Procedural Guidelines
RBI/2011-12/513 April 18, 2012 The Chairman and Managing Director / Chief Executive Officer Madam / Dear Sir, ECS (Debit) mandate management procedure by the banks – adherence to Procedural Guidelines Electronic Clearing Service (ECS), introduced by Reserve Bank of India in 1994 is now being widely used across many centres in the country for making and receiving bulk payments. The ECS (Debit) system was introduced with the objective of providing an alternative method for effecting payment transactions electronically in respect of the utility bill payments, insurance premia, card payments, loan repayments, etc., which would obviate the need for issuing and handling paper instruments such as cheques. This would also facilitate improved customer service by banks / companies / corporations / government departments, etc. that are collecting / receiving the payments. The ECS (Debit) Procedural Guidelines prescribes the procedure to be followed by the different stake holders in the process. The ECS (Debit) system works on the strength of the mandates given by the destination account holders to the User institution for effecting payment from their accounts. The destination bank branches can debit their customers’ account only on the basis of the mandates executed by them and the amount, time-limit, frequency etc. prescribed therein. Further, the account holder / customer is also entitled to withdraw the mandate / ECS Debit instructions from his / her bank without involvement of the User institution. The above safeguards have been put in place to ensure the smooth functioning of the system and also protect the interest of the customers. However, it is observed that the banks are not adhering to these instructions to the desired extent, thereby resulting in unsatisfactory customer service. In particular, it is found that banks are not accepting the withdrawal instructions from the customers as provided for under the guidelines. Accordingly, the banks are once again advised to adhere to the following instructions in the matter:
Please acknowledge receipt and ensure compliance. Yours faithfully (Vijay Chugh) |