ECS

ECS Clearing is a mode of electronic funds transfer from one bank account to another bank account using the services of a Clearing House. This is normally for bulk transfers from one account to many accounts or viceversa.

This can be used both for making payments like distribution of
dividend, interest, salary, pension, etc. by institutions or for collection of amounts for purposes such as payments to utility companies like telephone, electricity, or charges such as house tax, water tax, etc or for loan installments of financial institutions /banks or regular investments of persons.

•  Customer need not submit ECS mandate to the Bank .
• The customer need not make frequent visits to his bank for depositing the physical paper instruments.
• Customer need not apprehend loss of instrument and fraudulent encashment.
• There are no delay in realisation of proceeds.

• An account holder with a bank can authorize an ECS user to recover an amount at a prescribed frequency by raising a debit in his account. which is called ECS mandate for raising such debits. These mandates have to be endorsed by the bank branch maintaining the account.