Ecs rejected case
Perumal Prabhu
(Querist) 26 September 2012
This query is : Resolved
Sir/Mam
I have taken personal loan with HDFC. I have given cheques to clear my emis through ECS from my banker (Canara Bank). HDFC is sending letter that my ECS is rejected for one or other reasons. hence i am paying my emi by cash to the executive with fine.
In this regard please clarify how to settle this issue. whether i shall approach my banker or the bank where i have taken personal loan
Thanking you
R.K Nanda
(Expert) 26 September 2012
contact HDFC bank.
mahendrakumar
(Expert) 27 September 2012
actually,ecs facility is not available throughout india.
This facility is available at present at metros like bangalore,chennai,trivandrum,cochin etc.
better contact canara bank branch.
V R SHROFF
(Expert) 27 September 2012
Have sb in hdfc, with instruction to debit to clear emi.
Is it not easier and better?
Guest
(Expert) 27 September 2012
Yours is not a legal problem. However, it seems, you have some misunderstanding about ECS, as you have stated about issue of cheques for EMIs to your banker as well as EMIs through ECS payments.
There is a difference in payment through ECS and by cheque. In ECS a question of payment by cheque cannot arise, as both the methods cannot be used simultaneously at any time.
ECS is an electronic mode of payment / receipt for transactions that are repetitive and periodic in nature. ECS is used by institutions for making bulk payment of amounts towards distribution of dividend, interest, salary, pension, etc., or for bulk collection of amounts towards telephone / electricity / water dues, cess / tax collections, loan installment repayments, periodic investments in mutual funds, insurance premium etc. Essentially, ECS facilitates bulk transfer of monies from one bank account to many bank accounts or vice versa.
But, when a bank is instructed to make payments by ECS mode, it is also necessary that the credit receiving bank should also be a registered user member of ECS scheme.
The User intending to effect payments through ECS Credit has to submit details of the beneficiaries (like name, bank / branch / account number of the beneficiary, MICR code of the destination bank branch, etc.), date on which credit is to be afforded to the beneficiaries, etc., in a specified format (called the input file) through its sponsor bank to one of the ECS Centres where it is registered as a User.
So, you will have to check with both the (debiting and crediting) banks to know what problem actually persists and remove that hurdle as advised by your bankers.
Perumal Prabhu
(Querist) 27 September 2012
Thanks for your kind advise please
