What is meant by ecs code in bank?
ECS stands for Electronic Clearing System. It is the system by
which money can be credited/debited from a bank account by a bank.
Let us say you want to apply for a loan with ABC Bank, they will
get the details of the bank with whom you already have an account
and then ask you to fill up an ECS form using which ABC bank can
debit (take out) the money due to them as part of the monthly loan
repayment automatically from your account without you having to
make a trip to the bank to deposit the money against your loan
account. The same is applicable for salary credit into your account
too. If you submit an ECS form to your employer with your bank
details they can directly credit your salary every month without
you having to receive a paper pay-check and deposit it into your
account manually. The ECS Code is the code that is specific to a
bank branch. Without this code, ECS transactions cannot be
done.