What Is The Full Form Of ECS In Banking?
ECS full form in banking is Electronic Clearing Service, which is an electronic payment clearing system introduced by the Indian government. Prior to ECS, the beneficiaries and organizations were struggling a lot to debit and credit periodic amounts. And before ECS was introduced, beneficiaries had to use blank checks to allow the organization to deduct or transfer money with pre-authentication. And all of that is now eliminated by ECS since it was a much faster and more secure mode of electronic payment transfer from one bank to another.
What Are The Benefits Of ECS?
ECS has multiple benefits, such as, it made the whole electronic payment thing much faster, but still, there is some manual work required. That’s why the Indian government introduced NACH to make web payments faster, transparent, and secure. ECS not only reduced manual work but also reduced the use of paper, which is ultimately a good thing for the environment. With ECS, now people were able to transfer funds quickly, which was impossible with the old manual check submission method. Financial organizations and loan providers were now dependent upon ECS to automatically deduct the monthly installment amount directly from the account of the customer.