NECS Full Form: A new method of payment had been introduced by the Reserve Bank of India which provides you with an option to pay your monthly/quarterly/half-yearly/yearly interest/dividend/salary/pension utility bills like telephone, electricity, loan instalments, insurance premium, etc., directly through your bank accounts.
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NECS Full Form | What is the Full Form of NECS?
- Your bank account will be debited by the new payment system at the time of the due date. You will be advised in the normal manner to make the payment.
- Payment instructions will be sent electronically by us through our financial institution to Clearing Authority and the Clearing Authority will issue credit reports for the institution where you keep the account.
- Your bank will then debit the account, and then mark the debit as “NECS” in your account statement or passbook.
- If you own multiple bank accounts, payments can be made from any of the accounts. There is no need to open a new bank account to serve this reason.
- This is merely an additional payment method and is not required. You are entitled to opt-out of this method of payment by giving us advance notice of two weeks. Any complaint, (the scope of which is extremely limited) will be addressed and we promise you that we will reply in no more than 15 working days.
- If you have decided to take part in the new payment system it is your responsibility to fill out the Mandate Formula that is enclosed. The information that you supply must be complete and accurate in all respects and be confirmed by your financial institution.
- The information supplied by you will remain private and used solely for making the necessary payments for you.
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NECS Full Form | What is the Full Form of NECS?
The short title of the scheme will be known as “National Electronic Clearing Services” and it will be known as NECS in future. NECS will have two variations, NECS (Credit) and NECS (Debit). NECS (Credit) remains operating in the present. The scheme is operating from Mumbai and is administered through the Reserve Bank of India. There are currently 50647 branches in 116 member banks that are part of the scheme. The most recent information on the number of banks that are members and branches can be found on the official website of the Reserve Bank of India (RBI) (at www.rbi.org.in).
The goal is that the program is designed to allow centralised processing for repetitive bulk payments. Banks sponsoring the system must provide NECS information to a single centre which is. in Mumbai.
In Mumbai, NECS (Credit) will allow multiple credit credits to the beneficiary’s accounts in the core bank that is able to accept payments from destination banks at branches across the nation against only one debit from the User’s account in the Sponsor Bank, which has a settlement accounts in the books of the RBI, Mumbai. NECS (Debit) is operational when it comes into operation and will facilitate multiple debits to account holders with a single credit to the account of the User.
The system will leverage the banking core solutions of member banks to centralize acceptance and processing of outward NECS transactions in a straight-through fashion.
