ECS: Electronic Clearing Service
The full form of ECS is Electronic Clearing Service which is a mode of payment mostly in instalments cases. This scheme was introduced by the Reserve Bank of India for the purpose of fast clearing of repetitive and periodic payments.
Types Of ECS
There are two types of ECS service, one is ECS credit where the person gets the payment by providing any services and the other one is ECS debit where a person can pay his/her instalments, periodic payments or the repetitive payments.
Advantages of ECS
- Minimize paper usage
- No late payment charges
- 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 instalment etc. from this service.
- Timely payment of bills
- Maximize customer satisfaction
How to Active ECS
ECS is available with all the banks in India and it also accepts by almost all the companies providing services at PAN India level. What you need is to fill the ECS form by visiting your bank, providing the information whether you want a debit or credit ECS and then a cheque of the same account is needed for debit ECS. This way your ECS will get activated in the time provided by the bank.
Other full forms
- Full form of ICICI, Services and History
- CBI Full Form, Business and History
- What is the full form of IDBI Bank
You can visit our educational blog here
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