ECS is an electronic clearing system that facilitates paperless credit / debit transaction directly linked to your account and also provides for a faster method of effecting periodic and repetitive payments.
ECS uses the services of clearing house. This mode of remittance is normally used for Bulk transfers from one account to many accounts or vice versa.
This can be used both for making payments like distribution of dividend,
Interest, Salary, Pension, etc. by Institutions or for collection of amounts
for the purposes such as payments to utility companies like telephone,
electricity, water charges or for loan installments of financial institutions /
banks or regular investments of persons.