ECS Full Form in Banking | Full Form of ECS in Banking
ECS Full Form - Electronic Clearing Service ( full form of ecs )
- ECS stands for Electronic Clearing Service. It's an electronic mode of funds transfer from one checking account to a different checking account.
- It also facilitates electronic credit/debit transaction related to customer's account. It's usually used for transactions that are repetitive or periodic in nature.
Electronic Clearing Services
History of ECS ( full form of ecs )
- The Electronic Clearing Service was introduced by the Federal Reserve Bank of India to supply a faster method for Periodic and Repetitive payment.
- An ECS service are often of two types as follows:
- ECS credit : During this ECS, an establishment makes a credit to your checking account, e.g. your dividends, salary etc. So, one account is debited periodically to credit multiple accounts.
- ECS debit : During this ECS, you create payments as EMI for your loans, mutual funds, premium of policies etc.
Types of ECS
Advantages of ECS ( full form of ecs )
- Maximize customer satisfaction
- Minimize paper usage
- No late payment charges
- Timely payment of bills
- Facilitate customers to pay their essential utility bills like electricity bills, mobile bills, telephone bills etc.
- It also facilitates customers to buy mutual funds, premium , mastercard payment, loan installment etc. from this service.
How to get ECS Scheme
- You have to tell your bank and provide a mandate for the bank to authorize the institution, which may then debit or credit the payments through the bank.
- The mandate includes the small print of your bank branch and account information.
- Salaried persons and employees of state or private firms, who have a salary account, can contact bank authorities and sign for ECS.