Mumbai: The Reserve Bank of India inaugurated the National Electronic Clearing Service (NECS) in Mumbai on Monday to centralise the Electronic Clearing Service (ECS) operation and bring in uniformity and efficiency to the system, said a press release issued by the RBI.
Currently, the ECS system functions in a decentralised manner requiring users to prepare separate set of ECS data centre-wise.
In the first phase, RBI proposes to introduce NECS (Credit). Subsequently, NECS (Debit) would be introduced based on the feedback received from member banks.
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 whereas NECS (Debit) would facilitate multiple debits to destination account holders against single credit to user account, the release said.
The users would have to prepare a consolidated NECS file and submit it to RBI’s National Clearing Centre through their sponsor banks.
The system, with a pan-India characteristic leveraging on Core Banking Solutions (CBS), would facilitate all CBS bank branches to participate in the system, irrespective of their locations.
Till now, 25,000 branches of 50 banks are participating in NECS operations, the release said.
