BUSINESS COMMUNICATION

PRACTICAL NO. 6
• TOPIC-Electronic Clearance System.
• CONTENTS- Origin and meaning of ECS.
Importance In Business.
Use.
Limitations.
• GROUP PROJECT BY- ROLL NOS. 7821 to 7830
 Electronic Clearance System (ECS)
• It is mode of electronic funds transfer from one
bank a/c to another bank a/c using the services of
clearing system.
• Ecs Includes transactions processed under National
Automated Clearing House (NPCH) operated by
National Payments Coorporation of India(NPCI).
 Importance Of ECS (From business
point of view)
• Cost effective.
• The debits to customer accounts would be
monitored by the ECS Users , and the
customers alerted.
• Better cash management because of
realisation/recovery/
 USE
• Used by institutions for making payments such
as distribution of dividend
interest,salary,pension,amon others.
• It can also be used to pay bills,and other
charges such as telephone,electricity,loans as
well as SIP investments.
• ECS can be used for both debit and credit
pruposes.
 Advantages of ECS.
Reduces Paper Handling.
Lesser visits to the Bank.
Reduces Administrative Task.
Fewer chances of Fraud.
 Limitations Of ECS
• Attack on Transaction.
• Identity Theft.
• Hacking.
• Sometimes it can be Inconvenient.