What is ECS?
What is ECS?
ECS is an electronic mode of payment/receipt for transactions that are repetitive and periodic in nature. ECS is used by institutions for making bulk payment of amounts towards distribution of dividend, interest, salary, pension, etc., or for bulk collection of amounts towards telephone/electricity/water dues, cess/tax collections, loan installment repayments, periodic investments in mutual funds, insurance premium etc. Essentially, ECS facilitates bulk transfer of money from one bank account to many bank accounts or vice versa.
Primarily, there are two variants of ECS – ECS Credit and ECS Debit.
ECS Credit enables payment of amounts towards distribution of dividend, interest, salary, pension, etc.
ECS Debit is useful for payment of utility bills, cess/tax collections, loan installment repayments, periodic investments in mutual funds, insurance premium etc., that are periodic or repetitive in nature and payable to the user institution by large number of customers etc.
E-banking, also known as internet banking, online banking or virtual banking, is an electronic payment system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution’s website. The online banking system will typically connect to or be part of the core banking system operated by a bank.
Other Useful Notes