What is an ECS?

To eliminate this inconvenience, lenders in India now offer Electronic Clearing Service (ECS) facility to the borrowers. Let us have a look at what this facility is and how it works.

ECS was launched by the RBI for facilitating bulk transfer of funds from one bank account to another bank account. Loan providers use this facility to debit loan EMIs on a fixed date from the bank account of the borrower.