In the global market, the technology is becoming the driving forcefulness for bringing inwards the operational efficiency inwards banking industry. Several blogspot.com//search?q=functions-of-reserve-bank-of-india-rbi">RBI committees on computerisation, inwards the recent yesteryear choose recommended for adopting such technologies merged with the faster communication technology for the growth, evolution in addition to profitability. Some of these electronic services inwards banking, which choose come upward up recently, are described below.
Electronic Funds Transfer (EFT)
Electronic Funds Transfer (EFT) is a paperless remittance service across the blogspot.com//search?q=functions-of-reserve-bank-of-india-rbi">banks, in addition to is a major stride towards an efficient payment system. EFT facilitates transfer of funds yesteryear an describe concern human relationship holder from whatever bank, whatever branch, whatever centre to roughly other describe concern human relationship holder of same or roughly other branch, of same or roughly other bank, at the same or roughly other centre through electronic means. The communication network used for sending the messages from i centre to the other centre is BANKNET. Presently, this facility is available inwards metros in addition to other of import centres merely sooner volition endure made available to other major cities. For the EFTs at the same centre, the remittances are effected through the Net Clear alongside the participating banks.
Electronic Clearing Service (ECS)
1. ECS Credit
The 'Electronic Clearing Service (ECS) - Credit' is roughly other of import production inwards pursuit of electronic substitute of depository fiscal establishment check clearing. ECS - Credit tin sack endure used for payment of Interest Warrants, Dividend Warrants, Refund Orders, etc. The corporate clients, companies, etc., who choose to brand such periodic payments to a large release of beneficiaries, tin sack submit the information for such instruments / payments on a magnetic storage media to the clearing house. The Clearing House passes on the credit instructions to the fellow member banks where the beneficiaries keep their accounts. Besides saving time, stationery in addition to costs inwards a rattling large way, ECS - Credit too makes it possible to avoid the jeopardy of these instruments beingness intercepted inwards transit in addition to encashments yesteryear unscrupulous persons. Now many large companies, banks in addition to fiscal institutions similar UTI, ICICI, etc. are offering this facility to their shareholder in addition to unit of measurement holders.
2. ECS Debit
'Electronic Clearing Service (ECS) - Debit' is similar to the inwards a higher house system, merely is used for pre-authorised debit transactions. These are used to a greater extent than frequently than non for payments due for utility services to the companies or corporations, similar vociferation upward bills due to MTNL or BSNL, H2O charges bills due to Municipal Corporations, electricity bills to Electricity Boards, etc. The organization facilitates the customers / subscribers, maintaining the describe concern human relationship with the banks at the centres having this facility, to brand prompt payments of the bills on due dates without causing delays in addition to inconvenience to achieve the collection centres inwards fourth dimension for making such payments.
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