What is electronic Clearing Service (ECS)
The ECS scheme is a method of effecting bulk payment transactions like periodic (monthly/ quarterly/ half-yearly/ yearly) payments of interest/ salary/ pension/ commission/ dividend/ refund by Banks/Companies /Corporations /Government Departments. The transactions under this scheme move from a single User source (i.e. Banks/Companies /Corporations /Government Departments like Post Offices) to a widely dispersed number of Destinations, Account Holders. The account holders can either be customers or Investors. This scheme obviates the need for issuing and handling paper instruments and avoid the delay in getting the proceeds of instruments credited, thereby facilitating improved, and quick customer service by the Banks and Companies/Corporations/Government Departments effecting bulk payments.
At present the scheme is in operation at 15 centers where Reserve Bank of India manages Clearing Houses, 21 centers where SBI is managing ECS on behalf of RBI and 29 other centers where PNB and other banks are managing ECS on behalf of RBI. The ECS is being offered by e Department of Posts in connection with payment of monthly interest under "Monthly Income Scheme" (MIS). The depositors in Post Offices getting their interest on monthly basis can get it credited to their bank account on the due date at the designated Bank of their choice
Persons tired of standing in long queues can avail of this service.