Full Form Of ECS Or ECS Full Form
Full-Form Of ECS Is an Electronic Clearing Service
Some Details About ECS
Electronic Clearing Service is called ECS. An electronic mode of funds transfer from one bank account to another bank account is ECS. Electronic credit/debit transactions associated with the customer’s accounts are also facilitated by ECS. It is usually used for transactions that are repetitive or periodic in nature.
The Reserve Bank of India was introduced Electronic Clearing Service to provide a faster method for Periodic and Repetitive payment.
There are two types of ECS service given below:
ECS credit: In this ECS, an institution makes credit to your bank account, e.g. your dividends, salary, etc. So, multiple accounts are credit periodically to debited a single account.
ECS debit: In this ECS, you make payments as EMI for your loans, mutual funds, a premium of policies, etc.
You have to inform your bank and provide a mandate for the bank to authorize the institution, which can then debit or credit the payments through the bank. The mandate includes the details of your bank branch and account information. Salaried persons and employees of the government or private firms, who have a salary account, can contact bank authorities and sign for ECS.
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