Miscellaneous Charges
Last Update: 26 Feb 2023
1. What is ECSRTNCHG (NACH RTN Charges)
I recently learned that ECSRTNCHG stands for Electronic Clearing Service Return Charge, which is a charge that banks impose on account holders when there is insufficient balance in their accounts to pay for their loan EMIs. ECS is a system that enables the transfer of funds from one bank account to another. When you take a loan from a bank, use a credit card or set up a Mutual Fund SIP, the ECS deducts a fixed amount from your account on a particular date each month. This amount could be for loan repayment, SIP payment, etc. However, if you do not have enough money in your account one month, the ECS bounces. In this situation, the bank charges you a fixed amount as a penalty, which is deducted from your account. When this charge is deducted, you receive a message stating ECSRTNCHG.
How to avoid
If you don't want to have to pay ECS return charges, you will need to maintain sufficient balance in your bank account. If there isn't enough balance in your account and the ECS bounces, then you will have to pay a penalty. If your bank account is non-operative, dormant, or closed, then in such a situation, you should change your bank account as soon as possible so that EMI or other recurring charges can be successfully completed and you don't have to face ECS return charges.
Can it be refunded?
No, if there is insufficient balance in your bank account and ECS bounces in such a situation, you will not receive a refund. The bank charges you for this only when the recurring or monthly charges are not paid on time.