RBI offers Electronic Clearing System (ECS) for faster collections (ECS Debit) and payments (ECS Credit).

ECS Credit can be utilised for payments like interest / dividend etc. ECS Debit is normally used for collections which include payment of utility bills (electricity, telephone), collection of taxes etc.

ECS credit/debit facility can be availed at all available locations.

Following broad steps are common for both ECS Credit and ECS Debit:

	The company needs to obtain a mandate from the beneficiary / payee which would provide all the details as stipulated by Reserve Bank of India.
	The Company will have to route the ECS through a Sponsor Bank. The Company is required to submit a E1 form to get a User code from RBI through the Sponsor Bank. One user code is obtained for ECS at all RBI locations.
	The Company then submits the data in soft form for effecting the ECS. The data is provided in separate files sorted city wise.
	The data has to be provided to the Sponsor Bank atleast 7 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: Within 2 days of the settlement date, RBI provides a list of uncredited / returned items.
	ECS Debit: Within 1 day of the settlement date, RBI provides the final list of accounts debited and as per RBI regulations, no late rejects are accepted by RBI.

(The above are indicative steps and schedules, as per current rules. Please refer to guidelines issued by RBI for more detailed and exact schedules.)

For more details, write in to us at cms@hdfcbank.com and we will get back to you.