The three new modes of payment, namely the Electronic Clearing Service (ECS), the Voluntary Deposit Scheme (VDS) and online payment of bills via the Internet, will also reduce the burden on MTNL's collection centres.The online payment scheme is being started in conjunction with ICICI Bank. This is a free facility and it enables a customer to pay his telephone bills from the comfort of his home or office at the press of a button.

It is one of the features offered to subscribers of Infinity, India's first Internet banking service. The customer has to open an account with ICICI Bank in order to register. When hereceives his telephone bill, he logs in to Infinity and keys in the bill details. The bank takes care of the rest. The service is available free of charge.

The Electronic Clearing Service (ECS) is a scheme for making telephone bill payments through a customer's bank account. This scheme has been introduced in association with the Reserve Bank of India. A customer has to authorise his bank to remit the bill amount to MTNL by giving a mandate form to the company. The mandate form is available at the MTNL's Quick Customer Service Centre, via fax, in the number supplement directory, or at MTNL's Internet site.

The amount is debited on the due date, that is 21 days from the date of the bill. The customer can check that and his bank balance because he receives a copy of the bill, which is marked `Not for payment'. Also, going by his past bills, the consumer can fix an upper limit of the amount to be debited to his account.

He also has the option to end his subscription whenever he likes. If the consumer hasdoubts about the bill or does not have an adequate amount in his account, he can issue instructions to the bank to stop payment. He can then pay the amount directly to MTNL after his complaint has been redressed.

The Voluntary Deposit Scheme (VDS) is yet another mode of bill payment that allows the consumer to make an advance deposit to MTNL based on average billing. The deposit is adjusted in future telephone bills. The bills are sent to the consumer on a bi-monthly basis, indicating the adjustment and the balance of deposit available. The minimum deposit should be Rs 1,500, and in multiples of 500. Ideally, it should cover a year's average telephone bill.

The bill sent to a customer also shows the details of the balance amount of deposit after the telephone bills have been paid, so that the consumer may replenish the deposit as and when required. At the end of the financial year, MTNL provides a statement of account.

The company claims that VDS actually earns a consumer money, because a deposit payshim an annual interest of 12 per cent. Also, there is no fear of his line getting cut due to non-payment of bills.

It's a competitive world after all.