NECS facility opened

Written by Banking Bureau | Mumbai, Sep 29 | Updated: Sep 30 2008, 07:32am hrs
On Monday, V Leeladhar, deputy governor, Reserve Bank of India, inaugurated the National Electronic Clearing Service (NECS) at a function at the Reserve Bank's National Clearing Centre (NCC) here.

The service aims to centralise the Electronic Clearing Service (ECS) operation and bring in uniformity and efficiency to the system. Currently, ECS is operational at 74 locations, facilitating easy payments and collections for repetitive and bulk transactions. On an average, around 20 million ECS transactions are processed each month. Presently, ECS system functions in a decentralised manner requiring users to prepare separate set of ECS data centre-wise. Users are required to have tie-up with local sponsor banks for presenting ECS file to each ECS Centre.

NECS (credit) would facilitate multiple credits to beneficiary accounts destination branch at participating centre against a single debit of the account of a user with the sponsor bank.

NECS (debit) would facilitate multiple debits to destination account holders against single credit to user account. The system has a pan-India characteristic leveraging on core banking solutions of member banks.

This would facilitate all CBS bank branches to participate in the system, irrespective of their locations.