Full form of ECS

Full form of ECS is Electronic Clearing Service.

ECS is the service for transferring the funds through electronic mode from one bank account to other bank account. It also allows for electronic credit/debit transaction associated with the account of customers.

It is generally used for regular or periodically transactions. The RBI (Reserve Bank of India) introduced the ECS for providing a faster method of periodic and repetitive payment.

Types of ECS

There are two types of ECS services are available and which are:

ECS Debit

In this type of service, you can make payments as an EMI for various loans, to pay premium of policies, mutual funds etc.

ECS Credit

In this type of service, any organization or institute makes credit to your bank account such as, pension, salary, dividends etc. So, to credit multiple accounts the single account is debited.

Benefits of ECS

The benefits of ECS are as follows:

It minimize the usage of papers

ECS maximize the customer satisfaction

It helps in the payments of bills in timely manner

There is no late payment charges incurred

It provides facility to the customers for payment of their essential utility bills such as, mobile bills, electricity bills, internet bills etc. ECS also allows customers to pay for their insurance premium, loan installment, mutual funds, credit card payment etc.

The procedure to get ECS Scheme

The customer should have to inform the bank and it is necessary to provide a mandate for the bank to get authorization of institution, which can after credit or debit the payments through the bank.

The mandate contains the details of customer’s bank branch and mandatory account information.

At the time of filling the mandate form, it is necessary to fill out the maximum amount the bank should debit from your account, the purpose of debt amount, and a validity period. Then you will receive mail or SMS from the bank when the amount debited from the account.