Electronic Clearing System (ECS) is a method to transfer funds electronically from one bank account to another. ECS is primarily used by corporations for making bulk payments like salaries, pensions, pay EMI on loans, SIP payments, utility bills, etc.
ECS is conducted with the help of a clearinghouse, and in India, its debit is tackled by NACH (National Automated Clearing House) that works under NPCI (National Payments Corporation of India).
When obtaining a loan, you have to sign the ECS payment mandate. This mandate provides the clearinghouse with the authority, on a fixed date, to debit the monthly EMIs from your bank account and credit the same into your loan account, or the lenders account.
ECS payment mandate will record the complete information about your bank branch, bank account, ECS debit date, and amount.
When you desire to stop ECS debit from your bank account, first you're required to inform your loan provider. Submit the written application in the format prescribed by your loan provider. Once done, you must inform your bank by sending them a written application. Submit both the applications to the loan provider and bank a few weeks in advance before your EMI debit date.