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What is the full form of ECS

ECS: Electronic Clearing Service

ECS stands for Electronic Clearing Service. It is an electronic mode of funds transfer from one bank account to another bank account. It also facilitates electronic credit/debit transaction associated with customer's account. It is usually used for transactions that are repetitive or periodic in nature.

ECS full form


The Electronic Clearing Service was introduced by the Reserve Bank of India to provide a faster method for Periodic and Repetitive payment.


An ECS service can be of two types as follows:

ECS credit: In this ECS, an institution makes a credit to your bank account, e.g. your dividends, salary etc. So, a single account is debited periodically to credit multiple accounts.

ECS debit: In this ECS, you make payments as EMI for your loans, mutual funds, premium of policies etc.

Advantages of ECS

  • Maximize customer satisfaction
  • Minimize paper usage
  • No late payment charges
  • Timely payment of bills
  • Facilitate customers to pay their essential utility bills like electricity bills, mobile bills, telephone bills etc.
  • It also facilitates customers to pay for mutual funds, insurance premium, credit card payment, loan installment etc. from this service.

How to get ECS Scheme

You have to inform your bank and provide a mandate for the bank to authorize the institution, which can then debit or credit the payments through the bank. The mandate includes the details of your bank branch and account information. Salaried persons and employees of government or private firms, who have a salary account, can contact bank authorities and sign for ECS.

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