Electronic Funds Transfer Eft - Electronic Clearing Service Ecs

In the global market, the technology scientific discipline is becoming the driving strength for bringing inward the operational efficiency inward banking industry. Several RBI committees on computerisation, inward the recent past times pick out recommended for adopting such technologies merged with the faster communication technology scientific discipline for the growth, evolution in addition to profitability. Some of these electronic services inward banking, which pick out come upwards up recently, are described below.

Electronic Funds Transfer (EFT)

Electronic Funds Transfer (EFT) is a paperless remittance service across the banks, in addition to is a major footstep towards an efficient payment system. EFT facilitates transfer of funds past times an draw organisation human relationship holder from whatever bank, whatever branch, whatever centre to to a greater extent than or less other draw organisation human relationship holder of same or to a greater extent than or less other branch, of same or to a greater extent than or less other bank, at the same or to a greater extent than or less other centre through electronic means. The communication network used for sending the messages from 1 centre to the other centre is BANKNET. Presently, this facility is available inward metros in addition to other of import centres simply sooner volition endure made available to other major cities. For the EFTs at the same centre, the remittances are effected through the Net Clear with the participating banks.

Electronic Clearing Service (ECS)

1. ECS Credit

The 'Electronic Clearing Service (ECS) - Credit' is to a greater extent than or less other of import production inward pursuit of electronic substitute of banking company check clearing. ECS - Credit tin endure used for payment of Interest Warrants, Dividend Warrants, Refund Orders, etc. The corporate clients, companies, etc., who pick out to brand such periodic payments to a large release of beneficiaries, tin submit the information for such instruments / payments on a magnetic storage media to the clearing house. The Clearing House passes on the credit instructions to the fellow member banks where the beneficiaries keep their accounts. Besides saving time, stationery in addition to costs inward a really large way, ECS - Credit every bit good makes it possible to avoid the conduct chances of these instruments beingness intercepted inward transit in addition to encashments past times unscrupulous persons. Now many large companies, banks in addition to fiscal institutions similar UTI, ICICI, etc. are offering this facility to their shareholder in addition to unit of measurement holders.

2. ECS Debit

'Electronic Clearing Service (ECS) - Debit' is similar to the higher upwards system, simply is used for pre-authorised debit transactions. These are used to a greater extent than frequently than non for payments due for utility services to the companies or corporations, similar outcry upwards bills due to MTNL or BSNL, H2O charges bills due to Municipal Corporations, electricity bills to Electricity Boards, etc. The organisation facilitates the customers / subscribers, maintaining the draw organisation human relationship with the banks at the centres having this facility, to brand prompt payments of the bills on due dates without causing delays in addition to inconvenience to attain the collection centres inward fourth dimension for making such payments.