ESI challan is a multi benefited Social Welfare Scheme, for the ’employees’ in an organisation against cases of illness, maternity, disablement and death due to employment injury. ESI schemes provide full medical care to the employee registered under ESI. Further, it assists the employees to recover the financial losses incurred due to an official period of absence. Moreover, the scheme dispenses medical care to the employees’s family members too.
An ESI challan is a unique format used for depositing or transferring the offer or statutory payment in favour of ESI. In the new system, the bank has a vital role in receiving contributions and collating the important data regarding the contributions and sending them to the ESI corporation. In this article, we look at the various aspects of creating an ESI challan and making ESI challan payment.
Creation Of ESI Challan
To create a ESI challan, the contributor of the payment “must log on to the ESIC portal -> enter the details of the insured persons, details of their wages and number of working days.Upon doing this,the employer gets an option to generate a ESI challan and take print out of the same.” It has to be noted that all challans printed by employers are duplicate copies.
Information Stored In The ESIC Portal
The following details are stored in the ESIC portal while generating the ESI challan:
- A distinct fourteen digit challan number which is auto generated as a check digit.
- The employers’ code no & name in case of generating challans.
- The amount that is to be paid towards contribution.
- The Challan creation date.
Significances Of Check Digit
The sole purpose of the check digit is to verify the correctness of the other numbers when entered in the bank at the time of collection of contribution amount. It is auto-generated and is easily incorporated in the ESIC portal and is also incorporated in the core banking system. When the bank official enters the challan number and other details, the bank’s software application verifies the accuracy of the challan numbers entered.
Note: In case, there is an error while entering the challan number in the system, it will not accept the challan number entered.
Payment Against ESIC-Challan At Bank
A duplicate copy of the challan is presented at the bank for payment. The bank official verifies the check digit incorporated to the banks’ Core Banking System. The bank official enters the portal and verifies the following details which is stored on the banks’ system:
- Mode of payment
- Challan number
These details are transferred to the ESIC through MIS data. The bank clerk after receiving the money and entry of the details, returns the duly received duplicate copy of the challan to the employee. The second copy of the challan is kept by the bank branch for their records. In the case of clearing cheques, the transactions are entered in the parking account for the first instance. Once the cheque is cleared, the required information is entered in the banking system.
The MIS data from the bank is received and uploaded on to the ESIC portal for verifying it with the data pertaining to the generated challans. The ESIC system then checks and verifies the challan number sent by the bank with the challan number stored in our computer system. If the number matches with the data, the amount paid would match. If both the challan number and the amount matches, the details of payment against the challan would be stored and the employers’ records in the Revenue Module would be automatically updated on payment of the amount. The challan details that is matched with the MIS data sent by the bank are considered as Reconciled challan details.
In case the challan number or the amount mismatches, the details stored would also be invalid. The mismatched challan details are further sent back to the bank’s head quarters for verification purposes. The challan details stored in the ESIC portal which have not matched with the MIS data is called un-reconciled challan details.
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