ECS & EFT (Autosaved)

ECS & EFT
ELECTRONIC CLEARING SERVICE & ELECTRONIC FUNDS TRANSFER

E-BANKING
E-Banking is a product designed for the

purposes of online banking that enables to easy and safe
access to customer for their bank account.
✔ Also known as virtual banking, online banking, internet
banking.
✔ Safe, fast, easy and efficient.
✔ 24 hours a day,7 days a week.
✔ Banking transactions at any place, at any time.
CORE
ECS
EFT
Popular services E-CHEQUE
under e- ATM
DEBIT CARD
banking in India CREDIT CARD
SMART CARD
MOBILE BANKING
ECS
❖ ECS is an acronym of Electronic Clearing Services.

❖ Launched by RBI.
❖ ECS is a mode of electronic fund transfer from one bank
account to another bank account.
❖ This is done with the help of a clearing house.
❖ In India, ECS debit is mostly handled by the NACH(National
Automated Clearing House) which works under NPCI(National
Payments Corporation Of India).
MEANING OF ECS
❑ Electronic mode of Payments and

Receipts.
❑ Repetitive and Period Transactions.
❑ Bulk Payments and Bulk Collections.
❑ Facilitates bulk transfer of money from one
bank account to many bank accounts
and vice versa.
Variants of ECS
There are two variants for ECS
ECS CREDIT ECS DEBIT

ECS CREDIT
To Credit large number of beneficiaries having

accounts in different banks.
Single Debit to paying institution.
Multiple Credit to beneficiaries account.
Payment towards salary, pension, interest,
dividend etc.
ECS DEBIT
To Debit large number of customers having

accounts in different banks.
Single Credit to service providing institution.
Multiple debit from customers account.
Payment telephone, electricity, water bills, tax
and insurance premium collection etc.
DISTRIBUTION OF ECS
LOCAL ECS REGIONAL ECS NATIONAL ECS

▪ Operating at ▪ Operating at 9 centres ▪ Launched in 2008.
81centres/locations at various part of
▪ Operated at Mumbai.
across the country. country.
▪ Coverage of all core-
▪ Branch coverage is
banking enabled
restricted to the
▪ Branch covers a State branches located
geographical
or group of States anywhere in the
coverage of the
country
clearing house.
PARTICIPANTS
Payee- One who is going to receive.

Payer-One who is going to pay.
Payee’s Bank.
Payer’s Bank.
Clearing house- Facilitates the interaction between
two banks.
BENEFITS OF ECS SCHEME
▪ ECS Credit Debit scheme can be initiated by institution who apply

for it.
▪ There is no need to go to the bank branches/collection centres
after all formalities are completed while applying.
▪ Freedom paper handling as all credits and debits are done
electrically.
▪ So it avoid the loss and fraudulent of papers in transit.
▪ Cost effective.
▪ Customers need not track of due date for payments.
❖ The transactions is processed under
National Automated Clearing
House(NACH) and operated by the
National Payments Corporation of
FACTS: India(NPCI).
❖ NACH replaced ECS 2016, with the aim to
consolidate Multiple ECS system across the
country.
❖ NACH is also faster and more efficient than
ECS.
EFT
EFT is an acronym of Electronic Funds Transfer.

Regulated by Electronic Fund Transfer Act(NFTA)
NFTA lays out the rights and liabilities for EFT.
EFT is a system of transferring money from one
bank account directly to another without any
paper money changing hands.
It refers to any transfer of funds initiated through
an electronic terminal, including credit card ,
ATM ,POS transactions.
Various Modes of EFT in India
► NEFT- NATIONAL ELECTRONIC FUNDS TRANSFER

► RTGS- REAL TIME GROSS SETTLEMENT
► IMPS- IMMEDIATE PAYMENT SERVICES
TYPES OF EFT
❑ Direct Deposit
❑ Wire Transfers
❑ ATM
❑ Debit Cards
❑ Electronic cheque
❑ Pay-by-phone System
❑ Personal Computer Banking
Benefits of EFT
You have the right to dispute a transaction completed

by EFT.
It helps merchants to access funds faster.
You can still pay for items without a debit or credit
card.
Customers can set up automatic payments with EFTs.
Most EFT transactions don’t require a hold on the funds.
This service is available almost anywhere in the world.
THANKYOU…..

ECS & EFT (Autosaved)

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ECS & EFT

ELECTRONIC CLEARING SERVICE & ELECTRONIC FUNDS TRANSFER

E-Banking is a product designed for the

❖ ECS is an acronym of Electronic Clearing Services.

❑ Electronic mode of Payments and

There are two variants for ECS

ECS CREDIT ECS DEBIT

To Credit large number of beneficiaries having

To Debit large number of customers having

LOCAL ECS REGIONAL ECS NATIONAL ECS

Payee- One who is going to receive.

▪ ECS Credit Debit scheme can be initiated by institution who apply

EFT is an acronym of Electronic Funds Transfer.

► NEFT- NATIONAL ELECTRONIC FUNDS TRANSFER

You have the right to dispute a transaction completed

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