ELECTRONIC CLEARING & SETTLEMENT SYSTEM
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Information Technology and Digital Banking (Elective) — CAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is the primary regulatory body that oversees the Electronic Clearing Service (ECS) in India?
The Reserve Bank of India (RBI) oversees and regulates the Electronic Clearing Service (ECS) in India, ensuring standardized operations across all participating banks.
What is the full form of ECS in Indian banking?
Electronic Clearing Service for bulk fund transfers
What does ECS (Credit) facilitate in the Indian banking system?
ECS Credit facilitates bulk credit transactions such as salary payments, dividend distributions, interest payments, and pension disbursements by crediting multiple beneficiary accounts from a single debit to the sponsor's account.
Which organization introduced NACH to replace ECS in India?
NPCI — National Payments Corporation of India
What does ECS (Debit) primarily enable for businesses and utilities?
ECS Debit enables companies to collect recurring payments such as insurance premiums, loan EMIs, utility bills, and SIP investments by debiting multiple customer accounts on a specified date with prior customer authorization (mandate).
What is the full form of NACH in digital banking?
National Automated Clearing House
What is an ECS mandate and why is it essential?
An ECS mandate is a written authorization given by the account holder to the sponsor institution permitting periodic debits from their bank account; it is legally essential as no debit can be initiated without this prior consent.
What type of transactions does ECS Credit typically handle?
Salary, dividend, pension and interest payments
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