ECS is an electronic way of transferring funds from one bank account to another. It can be used by institutions to make payments such as distribution of dividend interest, salaries, pensions, among others. It can also be used to pay bills and other charges such as telephone, electricity, water or to make monthly installments equated loan payments as well as SIP investments. ECS can be used for credit and debit purposes.
ECS is an electronic mode of payment / receipt of transactions that are repetitive and periodic in nature. ECS is used by institutions to make bulk payment of amounts toward the distribution of dividends, interest, wages, pensions, etc., or for the bulk collection of amounts towards telephone / electricity / water fees, tax collection , in mutual funds, insurance premiums, etc. In essence, ECS facilitates the massive transfer of money from one bank account to many bank accounts or vice versa. ECS includes transactions processed under the National Automated Clearing House (NACH) operated by the National Payments Corporation of India (NPCI).