Q.1. What is Electronic Clearing Service (ECS)?
Ans It
is a mode of electronic funds transfer from one bank account to another bank
account using the services of a Clearing House. This is normally for bulk
transfers from one account to many accounts or vice-versa. This can be used
both for making payments like distribution of dividend, interest, salary,
pension, etc. by institutions or for collection of amounts for purposes such as
payments to utility companies like telephone, electricity, or charges such as
house tax, water tax, etc or for loan installments of financial institutions/banks
or regular investments of persons.