What Is The ECS Full Form In Banking, ECS Mandate
ECS Full Form In Banking : Electronic Clearing Service
The ECS full form is Electronics Clearing Service. ECS is the mode of fund transfer one bank to another bank account. It also facilitates credit/debit transaction associated with customer’s account. This mode also use at the time of various type of bill payment such as gas bill, electric bill, mobile bill, SIP Investments, salary payment etc. ECS was introduced in India by Reserve Bank of India to provide faster payment.
How to avail of an ECS scheme?
You have to inform your bank for setup ECS payment for your bank account. Your bank will give you a mandate form which required to fill out. This form will act as proof that you have authorised your bank to make debit or credit payment. In that form you have to fill your bank branch and other mandatory account details. At the time of filling form, its require to fill specify the maximum amount the bank should debit from your account, mention the purpose of debit, and set a validity period for every mandate that you’ve given to the bank. You will receive SMS or email alert to from the band when an amount gets debited from your account.
Type Of ECS:
There are two type of ECS. One is ECS credit and Another is ECS Debit.
ECS credit: In this case a bank make a credit to bank account. And this kind off account use to make payment like salary, dividends. This single account debited multiple times to to payment multiple account.
ECS debit: In this case a single account use to make payment for EMI, Loans, Premium, Mutual fund etc.
Advantages of ECS:
- Maximize customer satisfaction
- No late payment charges
- Timely payment of bills
- Customers able to pay for mutual funds, insurance premium, credit card payment, mobile bills, telephone bills loan installment etc.
- Minimize paper usage
Processing or service charges:
ECS service is free for customer. As per RBI’s direction sponsor or beneficiary bank cannot charge customers for ECS transactions. However, charges might be applicable for participating banks. As per RBI directive, bank need to pay a nominal charge of 25 paise and 50 paise per transaction when the amount is getting debited. The bank where the amount is getting credited as per RBI directive need to pay a nominal charge of 25 paise and 50 paise per transaction
How do you discontinue an ECS scheme?
To stop an ECS, Customer have to inform both the bank as well as the beneficiary of such payments in advance by a written application.
While ECS transactions will reflect in your account within the mandate given by you in terms of the quantum of payment and its date, remember to watch your bank statements regularly to make sure that there’s no mismatch between your given mandate and therefore the amount that’s being debited monthly from your account.
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ECS Full Form: Environmental Control System
This term Environmental Control System (ECS) is use in aviation industry. To provide air for ventilation, cabin pressurization and temperature control for the crew and passengers is known as Environmental Control System.
Other Abbreviation of ECS Full Form:
- Elitegroup Computer Systems
- Enhanced Chip Set
- Entertainment Computer System
Education Commission of the States
ECS Full Form In Hindi विद्युतीय समाशोधन सेवा.