Electronic Clearing System

Coverage
Bulk payment transaction like periodic payments defined as “User”

The transactions to move from a single User source to a large number of Destination Account Holders

The credit instructions from the User to the Destination Account Holders would be on media (tape/floppy/CD/pen drive) and would form the basis for the Sponsor Bank to debit the User’s account and the Destination Bank branches to credit the beneficiaries' Accounts

Such other payment transactions involving a single debit to a User’s account at one bank and multiple credits to a large number of beneficiaries at many banks to be specified by National Clearing Cell (NCC) / Clearing House (CH) after ascertaining the level of infrastructure available at the Service/Main branches of member banks.

ECS Process Cycle
1.Guidelines for Input Preparation and Input Submission ( User Institution -> Sponsor Bank -> Clearing House) )
2.Record layout of inward data for destination banks ( Clearing House -> Destination Banks)
3.Record layout of return data ( Destination Banks -> Clearing house)
4.Record layout of Final Output Data after return processing (Clearing House -> Sponsor Bank -> User Institution)


Return of processed output
If a Destination Bank branch is not in a position to credit a particular transaction for reasons like “Account closed/transferred”, “No such Accounts”, “Account description does not tally”, etc., it should report the same with a Return Memo . The same would be forwarded to its Service Branch/Main Branch on day-1