Women Savings Account

HDFC Bank's Wholesale Value Added Service for ECS (Electronic Clearing Service) Credit and Debit provides efficient electronic payment solutions for businesses. This service streamlines payment processes by enabling automated credits and debits directly to designated bank accounts, ensuring timely and secure transactions.

Efficient ECS Banking Services

  • Faster Collections and Payments
  • The Reserve Bank of India (RBI) offers the Electronic Clearing System (ECS) for quicker collections (ECS Debit) and payments (ECS Credit). Use ECS Credit for expenses such as interest or dividends. Use ECS Debit to collect utility bills (electricity, telephone), EMI of loans, etc. ECS Credit and Debit facilities are available at all locations.
  • Steps to begin ECS services
  • Obtain a mandate from the beneficiary/payee, which will include details as stipulated by the Reserve Bank of India.
  • Route the ECS through a Sponsor Bank. Submit an E1 form to get a user code from RBI through the Sponsor Bank. One user code can be used for ECS at all RBI locations.
  • Submit the data in soft form. The data is provided in separate files sorted city-wise.
  • Provide the data to the Sponsor Bank at least 5 working days before the settlement date.
  • The settlement date is when the beneficiary's account will be credited (ECS Credit) or the payee's account will be debited (ECS Debit).
  • ECS Credit
  • Returns turnaround time varies from T+1 to T+3 after the settlement date for ECS credit. RBI provides a list of uncredited or returned items.
  • NECS Credit
  • It is a centralised process, and the turnaround time for data submission is 2 days prior to the settlement date, and returns are provided on the next working day of the settlement date. All documentation is like ECS credit, and only one E1 form is required.
  • RECS Credit & Debit
  • This is region-wise processing, and the turnaround time for data submission is 2 days prior to the settlement date. Returns are provided on the next working day of the settlement date. All documentation is similar to credit & debit; only a single E1 form is required for a region.
  • (The above are indicative steps and schedules, as per current rules. Please refer to the guidelines issued by RBI for more detailed and exact schedules).

Frequently Asked Questions

ECS Debit automates payments by authorising organisations to withdraw funds from your bank account. You need to provide bank details and sign a mandate form specifying payment dates. The organisation submits debit requests to their bank, which are processed by a clearinghouse, and both parties receive transaction confirmations.

 The benefit of ECS Debit is that it offers convenience by automating payments, ensuring timely transactions, reducing paperwork, and being cost-effective. It enhances security through electronic processing, minimising the risk of fraud or errors associated with manual payments.

ECS Credit involves crediting funds to accounts electronically, commonly used for salary payments, dividends, and pensions. Organisations authorise their bank to credit funds to multiple recipients on specified dates, with recipients providing account details and signing mandate forms. Transactions are processed through a clearinghouse, with both parties receiving confirmations.