Electronic Clearing Services (ECS)
Want to make periodic payments without the hassle? Federal Bank presents Electronic Clearing Services enabling you to make repetitive and periodic payments/ receipts with ease
- Features & Benefits
- How it works ?
- Service Charges
- ECS is used by institutions for making bulk payment of amounts towards distribution of dividend, interest, salary, pension, etc., or for bulk collection of amounts towards telephone / electricity / water dues, cess / tax collections, loan installment repayments, periodic investments in mutual funds, insurance premium etc.
- Essentially, ECS facilitates bulk transfer of monies from one bank account to many bank accounts or vice-versa.
Variants of ECS - ECS Credit and ECS Debit
- ECS Credit is used by an institution for affording credit to a large number of beneficiaries (for instance, employees, investors etc.) having accounts with bank branches at various locations within the jurisdiction of a ECS Centre by raising a single debit to the bank account of the user institution.
- ECS Credit enables payment of amounts towards distribution of dividend, interest, salary, pension, etc., of the user institution.
- ECS Debit is used by an institution for raising debits to a large number of accounts (for instance, consumers of utility services, borrowers, investors in mutual funds etc.) maintained with bank branches at various locations within the jurisdiction of a ECS Centre for single credit to the bank account of the user institution.
- ECS Debit is useful for payment of telephone / electricity / water bills, cess / tax collections, loan installment repayments, periodic investments in mutual funds, insurance premium etc., that are periodic or repetitive in nature and payable to the user institution by large number of customers etc.
Advantages of ECS Debit
- ECS Debit mandates will take care of automatic debit to customer accounts on the due dates without customers having to visit bank branches / collection centres of utility service providers etc.
- Customers need not keep track of due date for payments.
- The debits to customer accounts would be monitored by the ECS Users, and the customers alerted accordingly.
- Cost effective
Who can make payments?
- Federal Bank has implemented ECS Debit clearing in select branches in the country.
- Customers having SB/Current account with other banks can make use of this facility to make loan installment payments automatically to loan accounts with us.
How to make payments via ECS?
- Contact the branch where the SB account is maintained and submit an ECS Mandate for permitting them to deduct the loan amount.
- Submit the copy of mandate at Federal Bank branch where your loan account is located.
- Through Electronic Clearing Services, Federal Bank will receive the amount as loan installments to your loan account with us
For Service charges and fees, please click here.