Fast and easy payments and collections
The Reserve Bank of India (RBI) offers the Electronic Clearing System (ECS) for faster collections (ECS Debit) and payments (ECS Credit).
Use ECS credit for payments like interest or dividend. Use ECS Debit for collection of utility bills (electricity, telephone), EMI of loans etc.
ECS credit and debit facility is available at all locations
Obtain a mandate from the beneficiary/payee which will include details as stipulated by 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 the date on which the account of the beneficiary will be credited (ECS Credit) or 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 turnaround time for data submission is 2 days prior to settlement date and returns is provided on the next working day of the settlement date. All the documentation is similar to ECS credit and only a single E1 form is required.
RECS Credit & Debit
This is region-wise processing, and turnaround time for data submission is 2 days prior to settlement date. Returns are provided on next working day of the settlement date. All the documentation is similar to credit & debit and only single E1 form is required for a region.
(The above are indicative steps and schedules, as per current rules. Please refer to guidelines issued by RBI for more detailed and exact schedules).
